Brazil also adopted inflation targeting in 1999, following the collapse of its crawling-peg exchange-rate regime in the months after the 1998 Russian debt crisis. After a transition period that included monetary and fiscal tightening, President Cardoso issued a decree in June 1999 announcing multiyear inflation targets.
He assigned responsibility for setting the targets to the National Monetary Council and gave the central bank full responsibility for implementing monetary policy as needed to achieve the targets.8 The Brazilian Central Bank has taken this responsibility seriously; for example, it has tightened monetary policy several times since inflation moved above the target range last year.