THE INFLUENCE OF POLITICAL LEADERSHIP IN BRAZILIAN ECONOMIC STABILIZATION PLANS: FROM CRUZADO TO REAL

• Main Authors: Junior Ivan Bourscheid, Rodrigo Stumpf González, Rodolfo Silva Marques
• Format: Article
• Language: English
• Published: Universidade Federal do Rio de Janeiro 2016-07-01
• Series: Revista de Estudos Institucionais
• Subjects: Planos Econômicos; Estabilização; Medidas Anti-Inflacionárias; Liderança Política
• Online Access: https://www.estudosinstitucionais.com/REI/article/view/33

This paper briefly discusses the political-economic relationships that marked the planning to economic stabilization in the Brazilian New Republic government, specifically in the period between the implementation of the "Cruzado Plan", in 1986, and the Real Plan, through 1993 and 1994. Therefore, we used qualitative research, within historical profile. The article encompasses some relevant elements in the political and institutional to understand perspectives and limitations to the applicability of the economic policies arising from the democratization, aimed at overcoming the economic crisis that permeates the beginning of the transition to democracy. Using the neo-structuralist approach of inertial inflation, it’s observed the political support’s importance to the gradual control of inflation, with the complete economic indexation, as well the necessity of an fiscal reform that permit the maintenance of the inflationary measures control. Thus, it´s showed that both the lack of an accurate diagnosis of the type of inflation and the political conditions to the utilization of anti-inflationary measures were relevant factors, in a scenario of recent democratic institutionalization and forming new political commitments aiming to consolidate alliances which ensure governability.