Inflation in light of the external debt constraint in Latin American countries/Brazil as a model


The research discusses a fundamental issue related to the impact of external debt on inflation rates in Latin American countries, taking Brazil as a model for these countries, as the problem of inflation is one of the biggest challenges facing macroeconomic policy makers in Brazil. The research aims to clarify and diagnose the effect of external debt on the inflation rate in Brazil for the period (1990-2019), and the research started from a hypothesis confirming that high external debt increases inflation rates as well as deepening this problem. The problem of indebtedness and its repercussions in the rate of inflation n, while the second came to specialize in estimating the research model, and the data for the research was tested in terms of its stability using standard statistical tests using the least squares method. The research reached a number of results, the most important of which was that the rise in external indebtedness caused an increase in inflation rates, and this phenomenon has become an inseparable and accompanying Brazilian economy and most of the Latin American countries.