In January 1999, Brazil devalued its currency, the real, after a speculative attack exposed the fragility of its fixed exchange rate regime. The crisis was triggered by a combination of fiscal imbalances, the Asian and Russian crises, and a loss of investor confidence, leading to a sharp depreciation and a recession. The International Monetary Fund provided a $41.5 billion bailout, and the crisis prompted Brazil to adopt a floating exchange rate and inflation-targeting framework.

The crisis was a major theme in Brazilian literature of the late 1990s, with poets and novelists exploring the social impact of economic instability. Writers like Paulo Coelho and others reflected on the crisis in their works, using it as a backdrop for stories of personal and national transformation, while the poetry of the period often expressed a mood of uncertainty and resilience.