Brazil's inflation and the Cruzado Plan, 1985-1988

Luiz Carlos Bresser-Pereira

In Pamela S.Falk Inflation: Are we Next? Hyperinflation and Solutions in Argentina, Brazil and Israel, Boulder: Lynne Rienner, 1990: 57-74.

Abstract. The Cruzado Plan (1986) and the Bresser Plan (1987) were price freezes, and both failed in stabilizing high inflation in Brazil. Yet, they involved quite different stabilization policies. The former was ambitious, and failed because it was victim of a populist implementation. The later was an interim policy, just aiming at dealing with an emergency situation. It should be followed by some reasonable solution for the foreign debt problem, a strong fiscal adjustment, and a new stabilization plan. I did not have political support for the two last initiatives, and resigned after seven months and a half in the Finance Ministry.


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