Brazil’s economy has faced multitude of challenges throughout its relatively short history. With the end of a militaristic government in the mid-1980s came a new beginning for Brazil. However, this fresh start was tarnished as Brazil’s economy was at a breaking point. It faced a foreign debt crisis as its economic growth in the 1970s had been garnered by accumulating debt. Inflation had become characteristic of the economy since World War ll, but in 1988 it reached an unimaginable 1038 percent. One example of the effect this economic situation had on everyday life was seen with telephone networks. While networks in the U.S. and other countries around the world were advancing during this period, Brazil’s networks were struggling to survive. The militaristic government had invested vast amounts in the 1970s, but by the late 1980s the demand was extremely low. A residential telephone number would regularly be priced at thousands of dollars and advertised in newspapers in major cities.
These problems persisted until the Real Plan was implemented in 1994. This plan proved to be the most successful at stabilizing the economy. Inflation immediately began dropping and had
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It saw a relatively uninterrupted growth until the last quarter of 2008, when Brazil finally faced the international crisis. The crisis, however, proved to be short lived as Brazil resumed growth in 2009. It effectively contained any damages and prevented any long-lasting consequences. Hopes were high that the long period of stagnation from the 1980s to the early 2000s was over. Unfortunately, reality struck when Brazil entered its longest and deepest recession caused in part, by prices for commodities crashing. Public debt has become more than two thirds of the country’s GDP and inflation has risen. Although the economy has been in decline over the last few years, it has not stunted the growth of certain aspects of Brazilian