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SUMMER SCHOOL 4: Inflation & Drinking Buddies
Planet Money
The Inflationary Spirale in Brazil
Inflation, by a certain extent, is a self fulfilling prophecy. The inflation rate in brazil in 19 90 was about 80 % a month. In the super market, they had to change prices every day. How much do you tell the sticker man to raise prices by? You have no idea. This is one of the pernicious effects of sustained high inflation.
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