Volcker Effect

🌎📈The main fear of Latin America is the so-called "Volcker effect", when in the 1980s the US Federal Reserve significantly raised the rate, after which the entire decade in the region there was a terrible famine due to a sharp increase in inflation (Mexico - 180%, Argentina - 3000%, Brazil - 3000%, Nicaragua - 7500%).

🧮📕In Latin America, there is a strong fear of a repeat of this effect, so many think tanks evaluate the current events through the growth of inflation in the countries of the region.

 📈📉If you look at the graph, you can see that, by the end of 2024, Cuba, Haiti and Suriname, as well as, of course, Argentina - 118% and Venezuela - 85% (calculations for this country are conducted by Western agencies that show a picture that is favorable to themselves) had inflation above 15%.

Thus, a repetition of this effect can only threaten countries with an unstable political situation (Argentina, Haiti) or countries under foreign pressure (Cuba, Venezuela)

📌P.S. The leader in the possibility of repeating the 1980s is Argentina.

Strategic Analytics Sector of INSRO "IPER"

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