BRAZILIAN ECONOMY

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Inertial inflation and the Cruzado Plan

Luiz Carlos Bresser-Pereira

World Development, 15 (8), 1987: 1035-1044.

Paper written a four months after January 28 1986 the Brazilian administration launched the Cruzado Plan was lauched to control inertial inflation. The two main dangers the plan was facing were relative prices desiquilibria left by the plan and an incrreasing budget deficit.