This paper discusses why inflation is so high in Latin America and what can be done to stop it. The first part starts with an analysis of monetarism. It also examines the impact of the debt crisis and of dollarization on inflation. Next, an interpretation of structuralism and its most recent...

This paper offers an interpretation of the Brazilian inflation and comments briefly on the Cruzado Plan. It emphasizes the problems of fiscal consolidation in the presence of a large public debt. What is missed in many analyses of stabilization programs is precisely the particular debt...