ABSTRACT
On February 28, 1986, the Brazilian government implemented a far-reaching program of economic stabilization with the objective of eliminating one of the oldest and most perverse elements of the Brazilian economy: inflation. Popular mobilization took place with the aim of supervising prices, which are temporarily frozen, and many independent public opinion polls gave the government a rate of approval of 80 percent or more. In the first place, the government guaranteed control or the primary sources of inflation: The public deficit was reduced, interest rates dropped, farm price stability was achieved, and the external accounts were brought into a state of balance. The government certainly recognizes that the price freeze will have to be ended, however only after the country has learned to live and work in an environment of monetary stability. Finally, the objectives of the stabilization program must be clearly understood.
