TY - JOUR AU - Franco, Gustavo H. B. PY - 1993/04/01 Y2 - 2024/03/29 TI - Alternatives to stabilization: gradualismo, dollarization, and populism JF - Brazilian Journal of Political Economy JA - BJPE VL - 13 IS - 2 SE - DO - 10.1590/0101-31571993-0726 UR - https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1322 SP - 196-215 AB - <p>The paper discusses the issues involved in three different varieties of stabilization<br />plans: gradualism, dollarization, and social pacts. It is argued that the efficiency of each<br />alternative depends upon special conditions pertaining, by and large to the dynamics of<br />price fixing in the Brazilian economy. Shock alternatives in particular, namely, price freezes<br />or pre-fixing schemes, are said to have their usefulness attached to “backwards looking”<br />price fixing behavior. Gradual strategies, on the other hand, especially when unambiguously<br />orthodox, are said to be more efficient when “forward looking” behavior is adopted by price<br />setters. The paper also discusses the conditions for the application of an Argentinean type<br />dollarization in Brazil and also institutional peculiarities affecting the feasibility of “social<br />pacts” in Brazil.</p><p><strong>JEL Classification:</strong> E31; F31.</p> ER -