ABSTRACT
A plan to combat inflation, specially the galloping inflation, is stated in this paper through a simples method which, using a combination of the income policy and a very moderate restriction of demand, consists of the introduction of a new currency or the price-stable “secondary currency”. After its introduction, the prices and the principal incomes should be frozen. According to the author, the success of this plan, for any country, will depend on the obedience to important requirements about its budgetary deficit and current account deficit.
KEYWORDS:
Inflation; stabilization