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After the mid-1980s, the gradualist approach of early attempts gave way to a more decisive, shock-therapy (“heterodox”) approach, beginning with the Austral Plan of June 1985, which introduced a new currency unit, the austral initially set equivalent to 1,000 pesos. When this failed, additional attempts were made, notably a policy package of October 1987 and the so-called Plan Primavera of August 1988...

When this failed, additional attempts were made, notably a policy package of October 1987 and the so-called Plan Primavera of August 1988.1 A common feature of these later efforts was the use of wage and price controls, supported by a (temporary) fixing of the exchange rate. But supportive fiscal and monetary policies were not sustained, making the wage-price freeze and the fixed exchange rate untenable...

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