Administrative policy: gradualism or shock

Luiz Carlos Bresser-Pereira and Yoshiaki Nakano

Chapter 4 of Bresser-Pereira, Luiz Carlos and Yoshiaki Nakano, The Theory of Inertial Inflation. Boulder: Lynne Rienner Publishers, 1987: 83-107.

Any policy to control inflation must necessarily be related to the corrresponding diagnosis of the causes of the current inflationary process. High inertial inflation can be neutralized by a heroic price freeze combined with conversion tables. The first proposal of a 'heterodox shock' in Brazil, published in July 1984, in Revista de Economia Política before Chico Lopes' August proposal publihed in a bulletin.


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