Alternatives to stabilization: gradualismo, dollarization, and populism

The paper discusses the issues involved in three different varieties of stabilizationplans: gradualism, dollarization, and social pacts. It is argued that the efficiency of eachalternative depends upon special conditions pertaining, by and large to the dynamics ofprice fixing in the Brazilian econom...

Descripción completa

Detalles Bibliográficos
Autor: Franco, Gustavo H. B.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:1993
País:Brasil
Institución:EDITORA 34
Repositorio:Revista de Economia Política
Idioma:portugués
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/1322
Acceso en línea:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1322
Access Level:acceso abierto
Palabra clave:Inflation
stabilization
dollarization
Inflação
estabilizacão
dolarização
Descripción
Sumario:The paper discusses the issues involved in three different varieties of stabilizationplans: gradualism, dollarization, and social pacts. It is argued that the efficiency of eachalternative depends upon special conditions pertaining, by and large to the dynamics ofprice fixing in the Brazilian economy. Shock alternatives in particular, namely, price freezesor pre-fixing schemes, are said to have their usefulness attached to “backwards looking”price fixing behavior. Gradual strategies, on the other hand, especially when unambiguouslyorthodox, are said to be more efficient when “forward looking” behavior is adopted by pricesetters. The paper also discusses the conditions for the application of an Argentinean typedollarization in Brazil and also institutional peculiarities affecting the feasibility of “socialpacts” in Brazil. JEL Classification: E31; F31.