Bolivijska hiperinflacija i stabilizacija
Bolivian Hyperinflation and Stabilization

Summary/Abstract: The paper begins with an analysis of the social causes of inflation in Bolivia, noting that they are to be sought in the instability of the Bolivian regime following the removal from power of General Hugo Banzer in 1978 and the outbreak of the external debt crisis in the early eighties. Next follows an account of the measures of economic policy adopted in August 1985, which over a short time almost completely eliminated the inflation running at an annual rate of 20,000 per cent. In contradistinction to the heterodoxal model applied in Brazil, Argentina and Israel, the model applied in Bolivia was the ortodoxal model, relaying on the tying of the exchange rate to the most relevant strong currency, elimination of the budget deficit, freezing of wages and salaries in the public sector, and unfreezing of the producer prices.

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