Presented at UT Dallas for the Management Honors Program International Business class on 11/2/10.
This is a brief overview of the economic history of Brazil, including the amazing story of conquering hyperinflation and then the incredible rebound of the economy over the past 15 years.
13. Attempt #1 - 1986
the cruzado plan
- General price freeze
- Wage readjustment and freeze
- Readjustment and freeze on rents and mortgage payments
- A ban on indexation
- A freeze on the exchange rate
14. Attempt #1 - 1986
the cruzado plan
- General price freeze
- Wage readjustment and freeze
- Readjustment and freeze on rents and mortgage payments
- A ban on indexation
- A freeze on the exchange rate
Failed
20. Attempt #4 - 1990
the collor de mello plan
this one actually sounded pretty good...
- Removed restrictions on free enterprise
- Increased competition
- Privatized public enterprises
- Boosted productivity
21. Attempt #4 - 1990
the collor de mello plan
this one actually sounded pretty good...
- Removed restrictions on free enterprise
- Increased competition
- Privatized public enterprises
- Boosted productivity
Failed
26. Quick Economics 101 Reminder...
Monetary Policy: the process by which the monetary authority of a
country controls the supply of money, often targeting a rate of interest to
attain a set of objectives oriented towards the growth and stability of the
economy.
- Open Market Operations
- Discount Rate
- Reserve Requirements
Fiscal Policy: the use of government expenditure and revenue collection
to influence the economy.
28. hardly your average drinking buddies...
Gustavo Franco - PhD Economics, Harvard
Pérsia Arida - MIT Economics
Edmar Bacha - First Brazilian to receive a PhD in
Economics @ Harvard
Pedro Malan - PhD Berkley
29. You have to slow down the
creation of money. But, just as
important, you have to stabilize
people's faith in money itself.
People have to be tricked into
thinking money will hold its
value.”
‘‘
http://www.npr.org/blogs/money/2010/10/04/130329523/how-fake-money-saved-brazil
33. Fernando Henrique Cardoso
President, 1995 - 2003
Privatization of enterprises
http://www.scielo.br/scielo.php?pid=S0034-71402005000200001&script=sci_arttext
‘‘
The results indicate that these companies became more efficient after
privatization. In particular there was an increase in profitability and
operational efficiency. Apparently, the loss of financial support from the
state has a major impact on the financial structure of companies, we
observed an increase of current liquidity and a reduction in long-term
debt. ”
37. provides a monthly allowance
to families whose children are
vaccinated and attend school
Bolsa Familía
38. For families with per-capita income below R$140/month:
R$22 ($12) per child attending school (max 3)
+ R$68 for families with per-capita income below R$68/
month
Bolsa Familía