BRAZILIAN ECONOMY

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Os dois congelamentos de preços no Brasil: Plano Cruzado e Plano Bresser

Luiz Carlos Bresser-Pereira

Revista de Economia Política 8(4), outubro-dezembro 1988: 48-66. Subsequently published in English with the title "Brazil's Inflation and the Cruzado Plan, 1985-1988".

This paper compares the Cruzado Plan With the Bresser Plan. Both were price freezes based on the treory of inertial inflation. However, while the Cruzado Plan intended to end with inflation, the Bresser Plan was an emergency plan aimed to cope with the deep financial and economic crisis left by the failure of the Cruzado. It achieved this objective. As to inflation, the authors of the plan expected that the rate of inflation would be back to around 10 per cent in december 1987 the actual rate of inflation in this month was 14 per cent.