In 1994, with the election of FHC, Brazil it implemented an ambitious program of monetary stabilization, the Real Plan, that foresaw One anchored monetary politics in one cambial politics of restricted control. The Real Plan obtained to establish a new wave of foreign investments the short and long stated period, but its bigger value was to obtain to increase the power of purchase of the population propitiating at a first moment an appreciable distribution of income. However, the new world-wide economic order foresaw turbulences. The cambial depreciation of the Asian countries and the eastern Europe affected the Brazilian exportations. Although everything, the foreign capital continued to enter in continuous way, in the search of better remuneration, exactly after the re-election of FHC in October of 1998. In November, the FMI announced a plan of aid to the Real looking for to contain the cambial crisis. In January of 1999, the international investors who had had great losses in the emergent markets of Asia and Russia, had finished losing the confidence in the Brazilian economy. It did not have as Brazil to defend the Real and to keep its cambial politics of mini depreciation front to the Dollar using its cambial reserves. The Real submerged in a wave of escape of capitals. A vicious circle was created: the exit of capitals despertou the attention of some financial agents and classificadoras institutions of investment risk who had concluded that these capitals in withdrawal represented a loss of credibility in the country, what it increased the vulnerability of the economy stimulating new withdrawals. In March of 1999, the Real approximately suffered to a depreciation from 80% front to the Dollar.
Since the beginning, the inflation was kept under control without any artificial economic measure. A consequence of the end of the inflation was the fast growth of the demand, so fast that the Secretary of the Treasury since the beginning had that to opt to one politics of reduction of monetary expansion and restriction to the credit for the increase of the taxes of interests. This strategy aimed at a supported auto growth, a distribution of income without demand explosion, and an increase of offers through the opening of the Brazilian market the international products. In year 2000, already it had better perspectives for the Brazilian economy. The overcoming of the difficulties caused for external shocks in previous years and the change of the cambial regimen, combined with the credibility reached for regimes of fiscal goals and goals for the inflation, had minimized the diffidence of the internal and external economic agents. However, in 2001, the adversities which the economy was submitted (problems with the economy of Argentina, the crisis of the electric sector, and the pressures on the exchange tax) had taken the inflation tax to surpass established the central goal and the superior limit. The increases of the indices of prices to the consumer had elapsed of the cambial pressure, the readjustment of managed prices and the harvest in addition of some agricultural products.