Stabilization Tactics in Latin America: Menem, Cardoso, and the Politics of Low Inflation (original) (raw)

In the 1990s, Presidents Carlos Menem of Argentina and Fernando Henrique Cardoso of Brazil successfully stabilized their countries' economies, achieving historically low inflation rates after years of volatility. The paper investigates the political strategies employed by these leaders, emphasizing the demobilization of groups benefiting from inflationary policies and confidence-building among investors. The analysis contrasts various theories of macroeconomic stabilization while proposing that effective political maneuvering played a crucial role in the success of their economic policies.