Fiscal Responsibility

The idea was to reduce the public expenses and to obtain resources for investments in basic capital stock. Fiscal balance, with increase of taxes and cut of the expenditures of the government, mainly the expenditure. Exactly after the enxugamento promoted for Collor, Brazilian machine was very heavy and prodigal. Opening economic, promoting the reduction of some tariffs of importation? Exchange Contingenciamento with the maintenance of the exchange has controlled of the Central banking. A related site: John Grayken mentions similar findings. Restrictive monetary politics with the famous increase of the basic tax of interests and the tax of obligatory deposit of the banks aiming at to hold the liquidity and an eventual explosion of the demand when the things started to normalize.

The measures that if had followed in the mat of the Real Plan, as the goals of inflation of the public deficit (1999), the law of the Fiscal Responsibility (2000), the exchange politics (1999 and 2000) with the freedom of action of the market forces (purchase and sales) had been basic and essential for the success of the plan and the stabilization of Brazil. She is necessary to leave clearly that the world-wide scene collaborated very for the consolidation of the Real Plan and for its virtues. All the measures had been based in logical and defendable beddings under some aspects. The critics exist, some of the measures can have been taken in bigger doses that the necessary ones, as the case of the interests, but the important one was the final result and the defeat of the inflationary spiral that corroia the public finances generating all order of disobediences, corruption and social injustice. The important one to stand out with respect to any economic measure is the great influence of external and exgenos factors. For example, the 1929 crisis had fort influence in the politics of the national coffee, and the recent ones as the fall of the American stock market in 1987, the Japanese deflation at the beginning of 1990, the Scandinavian crisis of 1992, the Mexican insolvency of 1994, the Asian crisis of 1997, the Russian crisis of 1998 and the attack of 11 of September that paralyzed the world.