The Brazilian Economy And Government

Decent Essays

In the past 20 years the Brazilian economy and government have overcome many difficult and major monetary problems. During the period of time from the 1980s to the 1990s Brazil experienced widespread inflation, leading to the devaluation of the Brazilian currency. This in turn hindered efforts at economic expansion and growth. The politicians and economists of the time did not know how to stop inflation from growing, and the GDP of Brazil in the 1990s fell by more than 80 percent, hitting an all-time low. In addition to monetary problems, like other South American countries Brazil was battling high rates of government corruption. In fact President Collor de Mello was impeached due to charges of corruption during September of 1992. Inflation was running very high in the midst of the 1990’s for Brazil and though many government leaders had promised to combat it since the 1980s, unfortunately their plans failed to work (The Real Plan, 2013, January 1). Thankfully, one man came up with the “Real Plan” which in fact worked and eliminated high inflation. After a successful recovery under the Real plan, Brazil would be hit in the future by two more economic crises: the South American economic crisis of 2002 and economic crisis of 2008, which had originated in the U.S. The economic crisis of 2008 was felt throughout the world, but thankfully Brazilian experience with the high inflation rates and economic crisis during the 1990’s helped them better prepare for the economic problems

Get Access