The Austral Plan

摘要: In recent years, several countries have experienced extremely rapid inflations, but without total collapses of the national currencies. Argentina was one those cases. By mid-1985, rate price increase exceeded 30 percent per month; however, prices continued to be set in pesos and there remained a sizeable volume (short-term) nominal contracts. The treatment such inflations poses questions: What is desirable speed disinflation? mix instruments can effectively act on causing an excessive fall real income? How kept stable or moderately rising trend? Austral Plan, announced June 1985, combined fiscal measures with price-wage freeze monetary reform, linked system for conversion debt program quite successfully managed transition much lower inflation rate, while output recovered rapidly after initial contraction. Still, inflationary forces strong: problem achieving sustained stabilization proved difficult solve. This paper briefly describes its effects, some references current debates policies. (See my 1986 study full discussion details.)