The persistence of indexation in post-Real Brazil

Vol. 34 No. 2 (2014)

Apr-Jun / 2014
Published April 1, 2014
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Roncaglia de Carvalho, André. 2014. “The Persistence of Indexation in Post-Real Brazil”. Brazilian Journal of Political Economy 34 (2).

The persistence of indexation in post-Real Brazil

André Roncaglia de Carvalho
Doutorando em Economia do Desenvolvimento — IPE-USP.
Brazilian Journal of Political Economy, Vol. 34 No. 2 (2014), Apr-Jun / 2014, Pages


The paper analyzes the shortcomings of the Real plan combining political science and economics, considering evidences on difficulties in implementing a complete plan of deindexation, namely: the distributional conflict, the corporatist relations between the State and society and the bureaucratic isolation of a highly specialized technocracy. The announcement of the plan triggered defensive reactions, fueling distributive tensions during the URV period, forcing the economic team to take measures that contradicted the overall guidelines followed. The persistence of indexation mechanisms indicate the resulting obstacles in seeking a reform of the State through a stabilization plan, even though the latter has the former as a precondition.

JEL Classification: N40; H19; C14.

Keywords: Real Plan distributional conflict indexation statecraft stabilization