ABSTRACT
The perverse effects associated to orthodox stabilization programmes, especially persistent inflation accompanied by a prolonged period of recession with unemployment, attract the attention on the evaluation of consistency between the orthodox approach and the economic situation which characterize the crisis. Then, the comparative study of two economic stabilization policies in Brazil, in the sixties and eighties - PAEG (1964-1968) and Stabilization Program (1980-1984) - gives opportunity to develop an analysis of the incoherencies in orthodox view about the roots of inflation and balance of payments disequilibria.
KEYWORDS:
Inflation; stabilization