Brazil Inflation

alan279 Serial expat

Member since 25 December 2022

alan279Serial expat29 October 2025 20:18:55

892

"That which cannot continue forever, will eventually stop.”

Also known as Stein's Law. Does it apply to Brazilian inflation?

abthree Brazil Expert

Member since 28 December 2017

abthreeBrazil Expert29 October 2025 20:58:41

6330

10/29/25 Probably not. Inflation is built into the world's monetary systems because of the general belief of central bankers that deflation is worse.

Since the 1940s Brazil has introduced new currencies and demonetized the old ones when they became very depreciated, but it's not required. There was probably a time that the Icelandic Krona was at par with the Danish Krone, but now it's only worth about 5 Danish øre, a coin so valueless that most Danes just throw it away, or USD$0.0081. But it's still their currency. The Japanese Yen used to be divided into 100 Sen, but the Yen has continued without subdivisions since 1953 because of inflation. The gradually inflating Real could go on to join them.