Price Freezing

Moral (1990) In the first months had a great excess of demand. After the adoption of the freezing of the prices and the maintenance of the wages in it continues ascension, the plan that already gave samples of being inconsistente, started to pull down, therefore with the demand excess they had started to lack products that the entrepreneurs hid and alone vendiam when they charged agio, that was a value charged above of the product who did not appear in forma bills of sale, had products as, for example: meat and milk in dust that had practically disappeared of the market. The government to prevent that the plan had a recessivo bias, transformed the indexation into settled assets daily pay, under the hypothesis that the future inflation would be null, this transformed monetary politics one in such a way how much folgada, contributed to aggravate the problem of demand excess. That the crossed plan finished being one them undertaken more catastrophic experiences already in Brazil, is question passed in judgeship.

What it interests to examine is because this experience gave wrong is because as many orthodox economists had applauded at the time To who to blame for the failure of the crossed plan, is question that valley only not to explore. In the days of success the plan had many parents and even though a muse, in the failure, all were escafederam What it matters to notice is that the crossed plan was conceived to pressas, with enormous errors of economic theory, (SIMONSEN, 1989, p.3-54). Sarney (on-line, 1997) the Cruzado was an experience, nobody wise person what it was a economic plan. Without the Cruzado, the Real would be impossible. It showed what if he had or not to make. ‘ ‘ It was the biggest error that I committed in the government, the greater of my life.