The samba effect is a nickname for the financial crisis in Brazil in 1999 where there was a 35% drop in the value of the Brazilian real. The effect was caused by the 1997 Asian financial crisis, which led Brazil to increase interest rates and to institute spending cuts and tax increases in an attempt to maintain the value of its currency.
The samba effect is a nickname for the financial crisis in Brazil in 1999 where there was a 35% drop in the value of the Brazilian real. The effect was caused by the 1997 Asian financial crisis, which led Brazil to increase interest rates and to institute spending cuts and tax increases in an attempt to maintain the value of its currency.
Source: Wikipedia "Samba effect" · CC BY-SA 4.0
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