Brazil's economy is prone to inflation, a problem that led to the adoption of a series of conservative economic policies in 1994 widely known as the real plan, designed to minimize spending to contain inflation. Former President Luiz Inacio Lula da Silva generally adhered to the provisions of the real plan, and during his administration the Brazilian economy was fairly stable. But since the recent financial crises in Europe and the United States, Brazil's economy, after initially flourishing thanks to increased Chinese demand for raw commodities , has begun to show signs of an inability to keep pace with demand. This is due in part to currency fluctuations and changes in consumer credit availability.