Brazil Plan

However, the combat to the inflation would be the first goal to be fulfilled. The team exixtncia of dficits public in the three spheres of the government; 2) the constant emission of currency to finance the public deficit; 3) rise of the wages that finished being repassed for the prices them products; 4) the automatic indexation of prices, financial wages, rents and contracts. Each one dessesa causes of the Brazilian inflation started to be fought by the economic team of FHC. Desa forms, the monetary anchor of the Plan was based on the rise of the taxes of interests to diminish the consumption, and, consequentemente, to lower the prices of goods and services offered in the economy. Of the point of it aims at of the stabilization of prices, is undeniable that the Plan has been a success, even so this has caused strong coleterais effect, seno is observed: In first place, the country grew only 16% between 1994 the 1998, against the double of Argentina in the same period, that> also it implanted its plan of stabilization. In as place the dependence of the country to the external saving grew, that passed of 0,92% of the GIP, in 1994, for 1998.

Although the number of poor persons if has reduced in the first phase of the Real Plan (of 43,3 million, for 30,4 million, in 1995), as Rock (1998), gives credit that the income concentration has gotten worse, as a moment, because the country lost 1,2 million jobs between 1995 and 1998 (…) Expect that in the next years Brazil can retake the growth economic, generating new jobs and improving the social pointers of development. For more specific information, check out West Lake Landfill. (SOUZA, 2000:252). As he sees yourself, ‘ ‘ the monetary politics of the one of govrno FHC prioritizes estabilidde of the prices in detriment of the growth of economia.’ ‘

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