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The Argentine shock and the Brazilian dilemma

Author

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  • Eduardo Marco Modiano

    (Departamento de Economia da Pontifícia Universidade Católica do Rio de Janeiro – PUC/RJ.)

Abstract

The application of the so-called “heterodox shock “ anti-inflation policy in Argentinaprovoked several discussions about the similarities and differences between Brazilianand Argentine inflation, and the possibility of its application in Brazil. This article attemptsto examine some of these questions. The analysis emphasizes the question of the lags in thereadjustments of the prices and the contribution of the conversion of prices to the averagevalues of the period for the stability of the new currency; the question of the synchronizationof wages and prices increases; and the utilization of conversion tables. Finally, the rate ofinterest and its relation with the level of economic activity. JEL Classification: E31.

Suggested Citation

  • Eduardo Marco Modiano, 1986. "The Argentine shock and the Brazilian dilemma," Brazilian Journal of Political Economy, Center of Political Economy, vol. 6(2), pages 244-258, April.
  • Handle: RePEc:ekm:repojs:v:6:y:1986:i:2:id:96498
    DOI: 10.1590/0101-31571986-1077
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    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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