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Abstract

This article analyzes the impact upon inflation of two wage indexation regimes: preset monthly adjustments, introduced :with the economy stabilization program of June 1987; and quarterly adjustments, that are viewed at present as an alternative to the official rule. The trajectories of the wage purchasing power under the two regimes and alternative scenarios for the monthly rates of inflation, after the wage and price freeze decreed in June 1987, are contrasted. Emphasizing the wage problem and the income distributive conflict, the chances of success of this more recent stabilization initiative for the Brazilian economy are discussed.