Ajustamento externo versus estabilização: 25 anos de política macroeconômica no Brasil (1974/98)

Abstract

This paper presents à brief summary of Brazilian macroeconomic policy from the oil crisis in the late '70s to the first four years of the Real Stabilisation Plan. The objective is tO delineate the internal policy changes made in response to external adjustment pressures (or policies designed to avoid such pressures) and their relation to stabilisation policies, regarding mainly the reduction of public deficit and/or controlling inflation. The analysis carried out in this paper shows that, at least in the Brazilian experience during the last 25 vears, the economic policies carried out with the objective of improving the balance of payment constraint (external adjustment) have been presenting results which are contradictory to stabilisation objectives, and vice-versa.