TY - JOUR AU - Salama, Pierre PY - 1987/07/01 Y2 - 2024/03/28 TI - Dollarization and heterodoxy in Latin America JF - Brazilian Journal of Political Economy JA - BJPE VL - 7 IS - 3 SE - DO - 10.1590/0101-31571987-3043 UR - https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1657 SP - 363-377 AB - <p>Changes in the international financial markets implied new conditions for the financing<br />of Latin American foreign debts. The “dolarização “ of these economies, both in the<br />broad sense (using the dollar rather than the local currency) and strict (capital flight) sense,<br />acquired new importance, intensely affecting the monetary sovereignty of these countries.<br />As a result, new economic policies were instituted in Argentina and Brazil aimed at reducing<br />inflation by imposing a price freeze and a general de-indexation of the economy without<br />causing a recession as well as at maintaining a minimal servicing of their external debts.<br />The author takes into account the external context as well as both the economic structures<br />and the accumulation of capital, which vary depending on the country and moment, as he<br />analyzes the limitations of the measures used to slow down the long-terrn “dolarização” and<br />the main features of the “Austral” and “Cruzado” plans, which were presented as heterodox.<br />Lastly, he presents the possible need to adopt measures that are more heterodox than those foreseen in those plans: success would be a result of a partial moratorium of the payment of<br />foreign debts and a sensible modification of the distribution of income.</p><p><strong>JEL Classification:</strong> F34; E31; E52.</p> ER -