Elections, coalitions, and the politics of Brazil's macroeconomic stabilization

Abstract After several failed attempts in previous years, Brazil's Plano Real finally ended hyperinflation in 1993–1994, and a significant driver of inequality and poverty was eliminated as a result. By combining data from Congress and newspaper archives, 17 interviews, and secondary sources, this article takes a qualitative approach to explore the notion that increased electoral competition and effective coalition management enabled price stabilization. Fernando Henrique Cardoso (PSDB), the economy minister leading the plan and the winner of the 1994 presidential election, campaigned as the anti‐inflation candidate, promising newly enfranchised low‐income voters that reining in prices would boost their earnings. Meanwhile, the minoritarian executive took advantage of coalitional tools to cultivate legislative alliances and approve the plan's measures. For analytical generalization, a potential model is proposed for further investigations on the relationship between competitive elections, cross‐party cooperation, and price stability in nine other country cases within and outside Latin America. Related Articles Adegboye, Alex, Kofo Adegboye, Uwalomwa Uwuigbe, Stephen Ojeka, and Eyitemi Fasanu. 2023. “Taxation, Democracy, and Inequality in Sub‐Saharan Africa: Relevant Linkages for Sustainable Development Goals.” Politics & Policy 51(4): 696–722. https://doi.org/10.1111/polp.12547 . Segatto, Catarina Ianni, and Daniel Béland. 2018. “The Limits of Partisanship: Federalism, the Role of Bureaucrats, and the Path to Universal Health Care Coverage in Brazil.” Politics & Policy 46(3): 416–41. https://doi.org/10.1111/polp.12252 . Zimerman, Artur, and Flávio Pinheiro. 2020. “Appearances Can be Deceptive: Political Polarisation, Agrarian Policy, and Coalitional Presidentialism in Brazil.” Politics & Policy 48(2): 339–71. https://doi.org/10.1111/polp.12345 .