Real Plan: from success to impasse

Abstract

Initially this article deals with the worldwide collapse of the exchange rate regimes and the ensuing monetary crises and their influence upon the inflationary experiences after 1979. The author analyses also the great reliance on foreign source of financing during the Real Plan. A critical analysis of the fixed exchange rate regime followed in Brazil after 1994 is then included in the text. The author argues also about the inconsistencies of the exchange rate policy and the contrationary monetary policy of high interest rate.