Planet Money

SUMMER SCHOOL 4: Inflation & Drinking Buddies

Aug 4, 2022

Luigi Zingales, a prominent economics expert, dives into the fascinating world of inflation and its real-life consequences. He shares the gripping story of Brazil's struggle with hyperinflation in the 90s, marked by supermarket chaos and economic despair. Zingales highlights the role of psychology in inflation, explaining how consumer expectations can exacerbate the crisis. He recounts how four drinking buddies developed an innovative currency solution, showing that even in dire circumstances, creative thinking can pave the way for recovery.

30:03

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Episode guests

Luigi Zingales

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Episode notes

Intro

2min

Understanding the Wage-Price Spiral and Hyperinflation

2min

The Psychological Spiral of Inflation

2min

Battling Brazil's Hyperinflation

7min

Consequences of Economic Mismanagement

2min

Innovating Stability: The URV Solution

7min

Economic Transformation: Overcoming Hyperinflation and Retail Pricing Insights

2min

Psychology of Inflation: Beyond Numbers

6min

Understanding Inflation Through Culture and Economics

2min

Inflation can be one of the scariest forces in the economy. As prices rise and your dollar doesn't go as far, you feel poorer, and it's all out of your control. To better understand inflation, we turn to the story of Brazil, where, in the 90s, hyperinflation threatened to derail the whole economy until the country turned to a group of unlikely heroes: four drinking buddies. | Subscribe to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney. |At this Summer School, phones ARE allowed during class... Check out this week's PM TikTok! | Listen to past seasons of Summer School here.

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