Hyperinflation leads to some really strange things going on that are a bit hard to imagine when you live in a time with modest inflation. One example that really surprised me when my parents told me is that buying a car was considered an investment. Nowadays this sounds insane because cars are expensive and depreciate in value quickly but back then you needed to spend all your paycheck ASAP before it evaporated and cars are something you can purchase that has high liquidity.
For something that is closer to answer your question, one thing that happened in those times is that interest rates were really high in order to make it possible for people to keep money in the bank instead of having everyone run away with their money and spend it on physical goods. In a way, this kind of forced the government to print money to pay its debts, which perpetuated the oversupply of money. The disastrous Plano Collor tried to solve the problem from this angle by freezing all the money in savings accounts.
In the end the root of the problem is that the Brazilian economy got so dysfunctional that market prices started to be based on the inflation rate instead of it going the other way around. The URV system got rid of this coupling, which is something a regular new currency can't do. By tying the prices to the US dollar you can cause prices to stop changing in a much more direct way than hoping that everyone is going to simultaneously that the money supply is stable and therefore they should stop raising prices.
For something that is closer to answer your question, one thing that happened in those times is that interest rates were really high in order to make it possible for people to keep money in the bank instead of having everyone run away with their money and spend it on physical goods. In a way, this kind of forced the government to print money to pay its debts, which perpetuated the oversupply of money. The disastrous Plano Collor tried to solve the problem from this angle by freezing all the money in savings accounts.
In the end the root of the problem is that the Brazilian economy got so dysfunctional that market prices started to be based on the inflation rate instead of it going the other way around. The URV system got rid of this coupling, which is something a regular new currency can't do. By tying the prices to the US dollar you can cause prices to stop changing in a much more direct way than hoping that everyone is going to simultaneously that the money supply is stable and therefore they should stop raising prices.