Brazilians

01.06.08). In this year of high of the taxes of interests and gone off acceleration of the indices of cost of living, it brings in return the threat of inflationary inertia. This mechanism to increase the prices having as base the last inflation if propagates by means of contracts that foresee clauses of indexation or for the feeling of the proper entrepreneurs and workers who want to keep the invoicing and the wage, respectively, ahead of the adjustment of relative prices that the increase of the inflation provokes. It comes back of the inflation and its consequences he is most immediate of these factors. The inflation already was a new reality since the beginning of the year, especially when the March numbers already proved a burst in the goals established for the government, exceeding the barrier of 5% in the period of 12 months (given of the IBGE). But the order of the factors is not what it really matters, since good part of the wage-earning Brazilians guard in the memory the effect of this high generalized of the prices, when it happens: as the days go passing, the wage goes losing its value and of the one not to buy the same products that could have been acquired in the start of the month.

Then the government decides to print more currency. The vicious cycle is created, in which the money never it is enough. It also weighs in this process the call law of offers and the search. How much bigger it is the search for one determined product, greater is its price this happens especially when it has much money circulating. In the contrary tip, a lesser search makes with that the price of the product lowers. In Brazil, unhappyly, the phenomenon also is if revealing as effect of the world-wide trend and the internal increase of the demand (economic growth and bigger availability of credit).

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