Inflation in Argentina : stop and go since the Austral plan

The Austral plan, launched in 1985, was Argentina's most recent stabilization strategy for reducing high inflation. A heterodox program, it combined orthodox components - tight fiscal policy and monetary restraint - with less conventional wage and price controls. The Austral plan failed to bring inflation down on a sustained basis, butit provided useful lessons about the design of heterodox stabilization programs, the difficulties of sustaining this type of effort, and the consequences of failure.