Brazil Points the Way Out of Inflation. Yes, You Read That Right
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Looking for hints on how to pull the world out of its current inflationary state? You could do worse than turn to a country whose currency is worth less than a trillionth of its value in the early 1980s.
At a time when most of the world is compounding the problems of broken supply chains and rising energy prices by slapping tariffs on imports, Brazil — of all countries — is opening itself up to trade.
It’s a remarkable turnaround for anyone familiar with Brazil’s history. In the years after World War II, the country was a cradle of import-substituting industrialization, a development policy popular in Latin America that choked imports to encourage domestic manufacturing. That lost out to the export-oriented model followed by Asia’s tiger economies and has since been abandoned. Still, Brazil’s tariffs on a trade-weighted basis remain the highest among Group of 20 economies after…
