The two price freezes in Brazil

Vol. 8 No. 4 (1988)

Oct-Dec / 1988
Published October 1, 1988
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Bresser-Pereira, Luiz Carlos. 1998. “The Two Price Freezes in Brazil”. Brazilian Journal of Political Economy 8 (4):535-52.

The two price freezes in Brazil

Luiz Carlos Bresser-Pereira
Professor da Fundação Getulio Vargas, São Paulo/SP, Brasil.
Brazilian Journal of Political Economy, Vol. 8 No. 4 (1988), Oct-Dec / 1988, Pages 535-552


This paper compares the Cruzado Plan with the Bresser Plan. Both were price
freezes based on the theory of inertial inflation. However, while the Cruzado Plan intended
to end with inflation, the Bresser Plan was an emergency plan aimed to cope with the deep
financial and economic crisis left by the failure of the Cruzado. It achieved this objective. As to
inflation, the authors of the plan expected that the rate of inflation would be back to around
10 percent in December 1987; the actual rate of inflation in this month was 14 percent.

JEL Classification: E31; E52.

Keywords: Inflation stabilization cruzado plan Bresser plan