 Dollarization and heterodoxy in Latin AmericaPierre Salama () Brazilian Journal of Political Economy, 1987, vol. 7, issue 3, 363-377 Abstract: Changes in the international financial markets implied new conditions for the financingof Latin American foreign debts. The “dolarização “ of these economies, both in thebroad sense (using the dollar rather than the local currency) and strict (capital flight) sense,acquired new importance, intensely affecting the monetary sovereignty of these countries.As a result, new economic policies were instituted in Argentina and Brazil aimed at reducinginflation by imposing a price freeze and a general de-indexation of the economy withoutcausing a recession as well as at maintaining a minimal servicing of their external debts.The author takes into account the external context as well as both the economic structuresand the accumulation of capital, which vary depending on the country and moment, as heanalyzes the limitations of the measures used to slow down the long-terrn “dolarização” andthe main features of the “Austral” and “Cruzado” plans, which were presented as heterodox.Lastly, he presents the possible need to adopt measures that are more heterodox than those foreseen in those plans: success would be a result of a partial moratorium of the payment offoreign debts and a sensible modification of the distribution of income. JEL Classification: F34; E31; E52. Keywords: Dollarization; stabilization; inflation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:7:y:1987:i:3:p:363-377:id:1657 Access Statistics for this article More articles in Brazilian Journal of Political Economy from Center of Political Economy |
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