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Brazil’s Economic Success leads to Inflation
Sources: FT: Brazil resolute on rate rises to calm inflation WSJ: Price of Success in Brazil: $15 Movies IMF: Watching Out for Overheating in Latin America CIA: World Fact Book, GDP Real Growth Rate Over the past few years, Brazil’s Gross Domestic Product (GDP) has steadily increased, going from 3.70% in 2006, to 5.10% in 2008, and reaching 7.50% in 2010, making Brazil’s economy one of the most stable, and the country itself one of the wealthiest in South America and the western hemisphere. However, this success has not come without a price, as Brazil’s cities have become some of the most expensive in the world. The Wall Street Journal reported that Brazilians pay the equivalent of $15 for a movie, which is more than New Yorkers pay. Likewise, the jump in the price of food, transportation, and land has resulted in the inability of millions of poor Brazilians to maintain their standard of living as their income remains unchanged but the price of items continue to rise. One reaso...
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