Inflation

Instantaneously, the Crossed Plan relieved abundant shares politician, seduced the nation and reconditioned the image of the government. For Macarine (on-line, 2009) the line of action sketched for Funaro was to the direction to look for to contain the trends of inflationary acceleration through expedients as the search of an informal agreement with the supermarkets aiming at a truce partial in the readjustments of prices it was said in damming the prices of 60 the 80 item during 60 days, for an improvement of the system of control of prices. It also had announcements of one politics of formation of regular supplies (with the importation of products as rice, soy, meat and potato) aiming at to create conditions to cross the period of period between harvests without great frightenings, and currently with these and plus as many actions of the indexation and exchange, already readily modified. 2 CRUZADO AGAINST in agreement INFLATION Vicentino (1999) president Jose Sarney assisted for Dlson Funaro and Joo Sayad (minister of the economy) lowered the decree n. 2.283 with measures to stabilize the economy, were about the crossed plan that it searched to revert to the inflation, among others measured substituted the cruise for the Cruzado, cutting three zeros of its value, congealed the prices per one year, it created the index of price to the consumer (IPC), and creates the wage unemployment. According to Ribeiro and Anastcia (2006) another instrument of the plan was the wage trigger that was gone off when the inflation reached 20%. Learn more on the subject from Guo Guangchang. In the first months the plan was a success and the popularity of Sarney and Funaro went up spectacularly. In this scene of glory &#039 is born the folclrica figure; ' inspector of the Sarney' '. Any citizen could denounce the traders who disobeyed to the freezing. Announced in national net of TV and radio the crossed plan, based in the freezing of prices, the wages and the exchange and creation of a new currency – the Cruzado – was hugged by some sectors of the society, but, in little time, it presented problems and the inflation came back to grow, threatening the economy and the politicians who were in the power.