"This is a story about how an economist and his buddies tricked the people of Brazil into saving the country from rampant inflation. They had a crazy, unlikely plan, and it worked."
NPR published the above story about how a young economist saved Brazil from their recurring hyper inflation problem. The trick was to establish a sense of confidence in the stability of the currency by creating a virtual currency that would remain stable, even as the physical currency, the cruzeiros, continued to fluctuate. The solution worked and Brazil went from a country with some pretty severe monetary problems to a major player in the global economy. This is the story of how an unreal currency became the Brazilian Real.
Click here to read the full NPR article. How Fake Money Saved Brazil
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