Finance, Forex and Investments

HELPP!!!!! I have a quick Q on Brazil and India?

Are Brazil or India experiencing high inflation? How does inflation affect exchange rates with U.S. currency and, ultimately, the cost of trade? How else may inflation impact a society and the world economy?

Public Comments

1. For the past cuple of years India is experiencing more inflation (concentrated in food products). it has crossed 10%; Brazil has more inflation. Inflation puts more money in circulation chasing fewer goods. Workers may find it difficult to manage their homes and they can't expect rise in their wages in s depressed economy. It depresses the trade too (export to other countries) and the trade balance may become adverse making curency cheaper in terms of other established currencies like the dollar. Inflation saps the purchasing power of the average wage worker. It leads to consumer resistance that leads to piling up of unsold goods, while profit margins is lowered a bit, cost of production can't be lowered. Production suffers because of lack of demand.