Hyperinflation and stabilization in Brazil: the first Collor Plan

Vol. 11 No. 4 (1991)

Oct-Dec / 1991
Published October 1, 1991
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Bresser-Pereira, Luiz Carlos, and Yoshiaki Nakano. 1991. “Hyperinflation and Stabilization in Brazil: The First Collor Plan”. Brazilian Journal of Political Economy 11 (4):565-91. https://doi.org/10.1590/0101-31571991-0895.

Hyperinflation and stabilization in Brazil: the first Collor Plan

Luiz Carlos Bresser-Pereira
Fundação Getúlio Vargas – FGV, São Paulo/SP, Brasil.
Yoshiaki Nakano
Fundação Getúlio Vargas – FGV, São Paulo/SP, Brasil.
Brazilian Journal of Political Economy, Vol. 11 No. 4 (1991), Oct-Dec / 1991, Pages 565-591

Abstract

In this paper are analyzed (1) the conditions that gave rise to hyperinflation in
early 1990, (2) the alternative programs of stabilization that were being suggested, and (3)
the stabilization plan that was finally adopted, the Collor Plan, whose failure the authors,
writing in June 1990, predict already in the title of the paper: “the first Collor Plan”. This
plan examined according to (1) the logic behind freezing 70% of the financial assets; (2) the
fiscal adjustment aspect; (3) the monetary or liquidity question; (4) the demand problem;
and finally (5) the causes of the resurgence of inflation with recession. For this analysis,
the authors utilize a neo-structuralist approach to the inertial or autonomous inflation
prevailing in Brazil.

JEL Classification: E31.


Keywords: Inflation stabilization Collor Plan