Fred Nora
754 posts

Fred Nora
@frednora
optimist, osdev, GUI, web apps and Economics. Psalm 139. NKJV
Londrina, Parana | Brazil Katılım Mart 2010
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Microsoft open-sources 86-DOS. The old 86-DOS source code dates back to the time before Microsoft bought it.
arstechnica.com/gadgets/2026/0…
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Brazil rebuilt its money from scratch in less than a decade.
Between 1986 and 1994, the country used five different currencies.
Cruzado in 1986, then Cruzado Novo in 1989.
Then Cruzeiro in 1990, then Cruzeiro Real in 1993.
Then finally the Real on July 1, 1994.
In June 1994, the official monthly inflation rate hit 47.43%.
Prices were doubling roughly every two months.
Five economic stabilization plans had already failed before this one.
Finance Minister Fernando Henrique Cardoso (later President) led the sixth.
The Plano Real did three things at once.
It built a parallel unit of account (the URV) pegged to the U.S. dollar.
It locked in a fixed exchange rate to anchor expectations.
It cut government spending and raised interest rates to choke off demand.
Within 30 days of the new currency launching, monthly inflation fell to 6.84%.
By December 1994, monthly inflation was 1.71%.
In June 1999, Brazil adopted formal inflation targeting and a floating exchange rate.
In 2021, the Central Bank was granted full legal autonomy under Lei Complementar 179.
The president of the Central Bank now serves a fixed four-year term that does not coincide with the term of the sitting president of Brazil.
This term protection is enshrined in a complementary law, a higher constitutional tier than the ordinary statute that protects the Federal Reserve chair.
Most capital allocators still price Brazil as monetary instability.
The country that broke 47% monthly inflation in six months trades at a discount built on a memory that no longer exists.

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