Townsend Justin Economics Boelter Economic History of Brazil •Brazil Economic History 1920s During the early 1900s,Brazil had a huge economic boost,due to the rapid growth of coffee consumption. By 1920 Brazil was producing three quarters of coffee across the globe,however this made the country reliant on coffee production and they overproduced coffee and caused its value to inflate and would become lower in demand due to the global recession. Brazil's terms of trade deteriorated significantly. This led to a large debt, and soon an external crisis that wouldn't be resolved until 1930. Brazil Economic History 1994-2000 In order to break inflationary expectations, the Brazilian government created the Piano Real or New Plan.