ABSTRACT Brazil is undergoing hyperinflation, even though the currency is not dead yet. But for any plan on inflation and stabilization to work, one must acknowledge that the process is hyperinflationary, not just inflationary This paper presents a series of possible ways to overcome this situation, including the need for a permanent fiscal adjustment.

Brazil Loans: Outstanding: Financial System: by Origin of the Capital: Private: Foreign data was reported at 492,005.000 BRL mn in May 2019. This records an increase from the previous number of 489,229.000 BRL mn for Apr 2019. Brazil Loans: Outstanding: Financial System: by Origin of the Capital: Private: Foreign data is updated monthly, averaging 96,008.500 BRL mn from Jun 1988 (Median) to May 2019, with 372 observations. The data reached an all-time high of 492,005.000 BRL mn in May 2019 and a record low of 0.000 BRL mn in Sep 1990. Brazil Loans: Outstanding: Financial System: by Origin of the Capital: Private: Foreign data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Brazil Premium Database’s Monetary – Table BR.KAB006: Loans: Outstanding: Financial System: by Origin of the Capital. The Brazilian Central Bank releases longer historical data, until Jun/1988. Since there are more than one currency type since the 1980’s the Brazilian Central Bank disseminates the information on Current Monetary units (cmu). During the 80’s and the early 90’s Brazil was facing a hyperinflation period and currency had been changed several times, please refer to details below: From 28/Feb/1986 to 15/Jan/1989 - Cruzado From 16/Jan/1989 to 15/Mar/1990 - Cruzado Novo From 16/Mar/1990 to 31/July/1993 - Cruzeiro From 01/Aug/1993 to 30/Jun/1994) - Cruzeiro Real From 01/July/1994 until today – Real

Brazil National Consumer Price Index (CPI): Staple Food Basket data was reported at 727.640 cmu in Sep 2019. This records an increase from the previous number of 724.830 cmu for Aug 2019. Brazil National Consumer Price Index (CPI): Staple Food Basket data is updated monthly, averaging 239.960 cmu from Mar 1990 (Median) to Sep 2019, with 355 observations. The data reached an all-time high of 1,086,393.990 cmu in Dec 1992 and a record low of 76.350 cmu in Jun 1993. Brazil National Consumer Price Index (CPI): Staple Food Basket data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Global Database’s Brazil – Table BR.IB059: Consumer Price Index: Staple Food Basket. [External Remarks] Since there has been more than 1 currency type since the 1980’s, the Brazilian Central Bank disseminates the information in Current Monetary units (cmu). During the 80’s and the early 90’s Brazil was facing a hyperinflation period and currency had been changed several times, please refer to details below: From 16/Mar/1990 to 31/July/1993 - Cruzeiro From 01/Aug/1993 to 30/Jun/1994) - Cruzeiro Real From 01/July/1994 until today - Real

In 2024, only two Latin American or Caribbean country registered deflation in their average consumer prices. St Lucia and Costa Rica had the lowest change compared to the previous year with -0.45 and -0.41 percent, respectively. In contrast, the average inflation rate in Argentina amounted to about 219.89 percent.

Latin America among the highest inflation rates in the world In 2023, the average inflation rate of the region was around 14.41 percent. Which is significantly higher than the global average of 6.78 percent. Some of that is explained by countries such as Venezuela, Argentina, and Suriname ranking in the top then of countries with the highest inflation rate in the world.

Chronic inflation in Latin America Chronic inflation is often defined as persistent high inflation throughout a long time. Some of the common examples of this problem are Venezuela and Argentina, both countries had episodes of hyperinflation, with price increases considerably over 50 percent per month in both cases. The last few years, the global crisis and economic sanctions, attenuated the situation with Argentina reaching once again three-digit inflation and Venezuela exceeding 63,000 percent inflation in 2019.

ABSTRACT This research analyzes the Brazilian structural economic crisis throughout the 1970s and 1980s and the political responses of the Authoritarian National Developmentalism (1964-1985). Firstly, the study highlights the nature of the international oil crises of 1973 and 1979, showing an unexpected rise in interest rates by the US Central Bank and the tightening of external credit after 1979. Rising interest rates meant the end of liquidity in the international credit finance market and the beginning of a drastically recessive policy in Brazil. These factors contributed to the erosion of the growth model based on external debt, a model reflected in two main paradigms: the “economic miracle” (1968-1973) marked by high GDP growth rates; and the II National Development Plan (II PND) (1974-1979), focused on deepening the import substitution industrialization (ISI). The collapse of authoritarianism led to hyperinflation, external indebtedness, and the state’s fiscal crisis, exposing the hegemony of rentier, nonproductive financial capitalism. The second part of the article investigates the negative externalities of the structural economic crisis at the social level, such as concentration, centralization, and closing of the decision-making process, hindering workers’ participation; the intensification of union mobilizations for wage recomposition; the spread of unemployment/underemployment in metropolitan regions; the wage squeeze; the increase in unhealthy labor relations and, therefore, the thinning of the social fabric.