1992 – The necessary stabilization

Vol. 12 No. 3 (1992)

Jul-Sep / 1992
Published July 1, 1992
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Bresser-Pereira, Luiz Carlos. 1992. “1992 – The Necessary Stabilization”. Brazilian Journal of Political Economy 12 (3). https://doi.org/10.1590/0101-31571992-0788.

1992 – The necessary stabilization

Luiz Carlos Bresser-Pereira
Da Fundação Getúlio Vargas – FGV, São Paulo/SP, Brasil.
Brazilian Journal of Political Economy, Vol. 12 No. 3 (1992), Jul-Sep / 1992, Pages


This essay tries to respond to the question: what is the reason for Brazil be
unable to stabilizes its economy? Three complementary responses can be assessed: i) a fiscal
adjust is necessary but not enacted; ii) there is not sufficient technical capacity; and, iii) the
country lacks political will. These are not mutually exclusive and are treated along the text
at the same time it is shown that the gradualist approach is not possible.

JEL Classification: E31; E42.

Keywords: Inflation stabilization