Brazil’s Experience with Hyperinflation

Brazil’s Experience with Hyperinflation


Growth and Industrialization were the main goals of Brazil’s policy makers until the 1980s. In the early 80s to mid 1990s Brazil experienced a high rate of inflation. This extraordinarily high rate of inflation is what is known as hyperinflation. Brazil’s policy makers now had to divert their attention to curbing this new enemy. What was the performance of the nations economy before, during, and after the crisis? What were the political and economic events that contributed to the crisis and how did the government react to correct these problems?

Brazil has a history of economic growth even amidst inflation. Political instability and economic stagnation led to the overthrow of the government in 1964 and a period of military rule that would last until 1985. The new government implemented a stabilization and adjustment program that accelerated growth between 1967 and 1973. The government was instrumental in economic developm...