Abstract

The present paper discusses the nature and the conditions of stabilization plan
in democratic societies, criticizing the technocrats’ approach that reduces those plans to a
mere technical decision, this hiding their social consequences and implications in terms of
gains and losses. The inefficacy of orthodox and heterodox plans from in recent years said
to be due to their lack of clarity, politics and legitimacy. A stabilization program cannot
be left in the hands of market or cannot be resumed to a fiscal adjustment and monetary
restrictions, but must have income policies, introduced by the State and with the active participation
of social classes. The experience of the sectorial chambers in certain branches of
industrial activities harbours an insight towards a new mechanism of coordination of prices,
wages and public prices, that can slow down that inertial inflation and keep price increase
in Brazil under control.

JEL Classification: E31; P13.