Last week, the Fernando Henrique Cardoso Foundation hosted a significant event commemorating the 30th anniversary of the Real Plan – the initiative that ended hyperinflation in Brazil. Although Mr. Cardoso, now 93, couldn’t attend due to health reasons, the gathering of key figures highlighted the plan’s political significance as much as its economic impact. The event serves as a reminder that economic stability is intertwined with political decisions.
Not a one-person idea
The Real Plan emerged as a response to hyperinflation that plagued Brazil in the early 1990s. Prices skyrocketed, reaching alarming rates that destabilized the economy. This led to the development of the Real Plan by a group of economists, including Persio Arida and André Lara Resende. Together, they created the groundwork for the successful implementation of the plan, ultimately bringing stability to Brazil’s economy.