Clipping of news on Brazilian Culture, Law and Citizenship
22/04/2014
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Throughout almost 20 years of the Real Plan , the accumulated inflation since 07.01.1994 till 01.02.2014 , IPCA , was 347.51 % . Thus , a product that cost R$ 1.00 in 1994 now costs R$ 4.47 .
The financial mathematician José Dutra Vieira Nephew says that due to this fact , the note of R$ 100.00 lost 77.65 % of its purchasing power since the day it started to circulate. Thus , the purchasing power of the note of R$ 100.00 is now only worth R$ 22.35 .
The loss of that purchasing power is calculated by a mathematical formula in which divides the nominal value of the currency by the rate of inflation plus 1 . Whoever wants to learn how to calculate the loss of purchasing power of money can follow the teacher's explanation Dutra to your blog .
" The real was reduced to almost a fifth of the value in 20 years," says the teacher . " But this is still a win . Because even after 20 years, it still retains a certain purchasing power. 's Previous history was that inflation reached 5,000 % per year. "
The grouper turned tetra
" With this devaluation , if the individual was earning U.S. $ 100 in 1994 now need $ 400 for power meet your desires," says Professor of Economics Insper Otto Nogami . " The grouper became a tetra " , referring to the fish stamp the note $ 100 .
The jaguar also became a kitten - note $ 50 today has the buying power of R $ 11.17 . In 20 years , the currency value of R $ 0.01 virtually disappeared .
This is due to the effect of inflation on purchasing power . " Inflation is the thermometer that measures the difference between the desire to consume and ability to produce ," says Nogami .
When the desire to consume is greater than the production capacity , prices rise .
Inflation is a chronic problem in Brazil
The chronic problem with Brazilian inflation is therefore the inability of the country to produce enough to meet the pent-up demand , ie , those who want to consume and pay for it .
" There is also an inconvenient and unwise for the government to stimulate purchases and there is not the necessary production to meet the consumption incentives .
Another factor that spurred inflation was the sharp fall in interest rates until 2012 . Offering credit made people feel more " rich " . "The Brazilian left for unbridled consumption into debt became delinquent . And the bill came to pay .
How to get out of this situation ?
It's simple , says Professor Nogami . The first step is to invest in the productive sector to suit the needs of production to consumption .
The second important item is the investment in education . Include in the curriculum the fundamental concepts of personal finance . Teach the importance of saving .
" Dreams consumer can and should be done , but by planning . First save to realize the dream and the dream not anticipate using loans and financing in the medium term reduce its ability to consume ," he says .
And when the product is too expensive , leave it on the shelf . After all , when the product left the settlements appear .
Source : UOL
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This article was translated by an automatic translation system, and was therefore not reviewed by people.