The Real Economic Plan In Brazil - An Overview

I - Introduction

In order to better understand the Real Plan and its beneficial affects for Brazil, it is important to first know Brazil's recent political history.

In this regard it is paramount to stress that as of December 1989, for the first time since 1960, 80 million voters elected in two round ballots Fernando Collor as President

President Collor began deep reforms on the Brazilian economy, trying to overcome the stagflation that characterized the 1980's. The measures adopted during his term included tariff reductions, privatizations, a floating exchange rate policy and two failed attempts to deter inflation.

However, in June 1992, the Brazilian Congress initiated an investigation on charges of corruption involving the President. In December 1992, in the midst of the impeachment trial, Collor resigned, but could not avoid being condemned for corruption and his political rights were suspended until 2001.