In 1985 the economy of Brazil expanded very vigorously and the gross domestic product increased by 8.3 %• This increase not only exceeded the average growth rate of 7 % per year recorded between 1945 and 1980, but also made it possible to recover the production and income levels lost between 1981 and 1983- The economic policy thus succeeded in consolidating the extraordinary adjustment of the country to the smaller volume of external resources available. However, it did not succeed in slowing the rise in the price index; on the contrary, the index soared from 190% to almost 225% (see table 1).

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