|
The accumulated inflation in Brazil within the period 67/94 (FGV - IGP/DI) amounted to the amazing figure of 1,142,332,741,811,850% (indeed a figure of 1.1 Quadrillion). Since 79 there had been 13 frustrated attempts to stabilize inflation.
Like a hero, the Real Plan was introduced in Dec/93 achieving the core goals of reducing and controlling inflation, and the indomitable monster was vanquished. Annualized inflation rate of 5,150% p/a. as at Jun/94 (right before the launching of new currency “the Real”) felt down to 10% as at Dec/00. Brazilian yearly inflation averaged, ever since, a less than two digits number (except in 2003).
Developed and implemented by Mr. Fernando H. Cardoso (“FHC”), finance minister, who subsequently became president,...
|