#Plano Real

Brazil's Central Bank and the War on Inflation — From 10,000% to 3%

This article examines Brazil's dramatic battle against hyperinflation in the late 20th century, culminating in the historic success of the 1994 Plano Real. It details the transition from chronic indexation and failed stabilization shocks to the modern Economic Tripod framework of inflation targeting, floating exchange rates, and fiscal targets. Furthermore, it explores the landmark 2021 central bank autonomy law and its role in safeguarding monetary stability.