Monetary Stabilization research within the Policy Experiments & Institutional Transitions series.
The 1991 legal dollar parity rapidly reduced inflation and restored nominal credibility, but its hard exchange-rate constraint increasingly shifted adjustment onto domestic prices, output, fiscal accounts and debt as external conditions deteriorated.
The August 1985 program sharply reduced fiscal financing pressure while changing the exchange-rate, price and public-sector regime; hyperinflation ended quickly, but the wider restructuring carried distinct employment and distributional costs.
The July 1985 program combined fiscal correction, tight money, exchange-rate stabilization and a negotiated wage-price framework to interrupt an inflation process embedded in several indexed institutions at once.
The 1994 stabilization separated the unit of account from the means of payment before launching the real, attacking backward-looking indexation while fiscal, monetary, credit and exchange-rate measures supported the transition.