On Hyper-Inflation
Hyper-Inflation. Scary stuff. Most 40+ people in Brazil know what that means, and what life is like in that scenario. How likely is it that it will return? How likely is it that it would have happened had the PT party stayed in power? How likely is it now that a right-wingish party is in power? All good questions. Here is an attempt at answering them: 1) Very likely. Brazil has a right-wing party but its populist, so it has a tendency to spend money to please the populace, while being dumb and believing that the government has a spending limit, and that spending generates inflation no-matter-what. So it is on a suicidal path by destroying supply, either through currency devaluations or demand suppression, all under the religious belief that…
