Date of Original Version



Conference Proceeding

Abstract or Description

Brazil's anti-inflation policy has frequently confused symptoms with causes and relied on one-time stop gaps. At times, these measures were based on the belief that inflation is an inertial process that can be stopped (or slowed) permanently by breaking the momentum. Policies based on this belief such as freezing wages and prices, changing the currency unit or freezing part of the stock of financial assets have failed to stop inflation. However, the last of these measures-the Collor plan-prevented inflation from becoming hyperinflation in 1990.



Published In

N. Liviatan, (ed.), Proceedings of a Conference on Currency Substitution and Currency Boards, the World Bank, 1993, as "Inflation and Stabilization in Brazil".