In an overlapping generations equilibrium model, the macroeconomic effects of confiscation of financial assets as occurred in the Collor Plan are studied by means of numerical simulations. The model is built on many features specific to the Brazilian economy, including a financial system dominated by banks that offer indexed assets and an uneven distribution of wage income and wealth. The framework permits the analysis of the aggregate and redistributive effects of the Collor Plan in a general equilibrium context. The simulation technique developed in this article generates both stationary equilibrium paths and transitionary paths. A temporary confiscation of assets simulation replicates the outcomes of the Collor Plan and thus provides insights as to why this stabilization plan failed. This simulation result, plus those of three other simulation experiments, highlights the difficulties in subduing inflation in an indexed economy when inflation taxes are an important source of revenue for the government. These results suggest the need for fiscal reform to enlarge Brazil's fiscal base and enhance its tax administration in order to win over inflation once and for all.