Keynes, Sargent e o papel da política monetária em um plano de estabilização

Abstract

One of the most controversial issues related to a stabilization program based on price control policies, such as the ones recently implemented in Argentina, Brazil, and Israel, is the role of the monetary policy. With the sharp reduction in inflation demand for money Twill be dramatically increased, Thus, in order to avoid the recessive impact associated to a rise in interest rates, the government will have to remonetize the economy. However, if the remonetization is made "too fast" the credibility in the stabilization program map be jeopardized. In this paper we analyze this dilemma, having in mind an almost unknown proposal made by Keynes to stabilize prices and the exchange in Germany during the twenties.