Trade Liberalization Since the Early Research Paper

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The historical exchange rate between the real and the dollar is as follows (source: IndexMundi):

Inflation was very high in the early 90s, then was calmed under the pegged exchange rate regime. Since the real's collapse, inflation has remained relatively high in Brazil, but has been under control. In recent years, inflation is increasing as Brazil's economy is performing well. This puts downward pressure and the real and in turn has a negative impact on the country's export-driven businesses.

I believe that the exchange rate policy has helped Brazil since the currency crisis.

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The price stability in the 1990s was also important but the policy at that time limited foreign direct investment to the public entities that were being privatized. In more recent years, liberalizing of the currency regime has helped to spur strong economic growth. However, as that growth has grown too large, the country has been forced to implement more controls on the real. While this protects exporters, it hurts the GDP by reducing trade in general.

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