However, even if we extend our sample period through late January 1999 (to capture the initial sharp devaluation) or April 1999,to include the first three months of a more freely floating exchange rate in Brazil, this does not help any of the macroeconomic variables to become significant. The reason is that although Brazil had current account and budget deficits in 1996, its final devaluation was not large compared to some other emerging market countries. Brazil experienced a 37 percent devaluation from the end of 1996 through April 1999, which is about the same as in Thailand and Malaysia and much less than in Indonesia or Russia (Table 3). This is not enough to change the outcome for any macro variable in the regression analysis. Interestingly, the lack of total collapse in Brazil, despite the poor initial macroeconomic fundamentals, is very much in line with what could have been predicted using the governance results from the next section