The Illusion of Stability : The Brazilian Economy Under Cardoso

This paper begins with a description of the main characteristics of Brazil's Real stabilization program and its initial success in eliminating inflation. It then examines the use of the exchange rate to keep inflation in check and the problems which overvaluation created. It also focuses on the structural desequilibria it faced and the various artifices that were used to deal with them but which ultimately led to a set of contradictions that brought about its collapse