Hyperinflation and the re-integration of monetary functions : Argentina and Brazil, 1990-2002

摘要: High inflation is generally associated with a fragmentation of monetary functions : the unit account and payments are split transferred onto alternate institutional supports. This paper compares Argentine experience, dominated by dollarisation, to backward-looking indexation prices on domestic indices which was rule in Brazil. contrast reflected different patterns as difficulties stabilisation. After failed orthodox heterodox attempts 1980s’, both countries adopted comparable ‘third generation’ strategy, core respectively, bimonetary Currency Board regime Real plan, wholly reconstructed single national unit. However, while latter resisted 1999 sharp devaluation allowed for an orderly adjustment relative prices, un-pegging peso led unique experience where payment system, have been separately destroyed.