Abstract

For two decades, the Brazilian society has, with great effort, kept inflation under control. The economic and social results were visible, especially among the most vulnerable groups in the social ladder. The “economic” school of developmentism that prevailed during the last recent years has compromised public finances and may have triggered the resurgence of inflation. This movement shall be understood as part of a broader strategy to maintain Public Sector expansion. The biggest losers will be the most vulnerable families and the middle class that, besides the reduction of their purchasing power in the short term, will have their retirement strategies jeopardized by a dismal future scenario.

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