X. The Need for Persistence

As was stressed initially, and has been amply illustrated by both Brazilian and international experience, the stabilization process requires time to bear fruit. It requires not only macroeconomic consistency in designing programs, but persistency in implementation. Any hesitation in introducing necessary adjustments will be extremely costly, endangering the success of the Real Plan and imposing greater sacrifices on future generations.

Obviously, the government must continue its tenacity and determination to maintain monetary stability, but it must also have the flexibility and capacity to identify the proper moment to ease its constraints on consumption. No matter how onerous the government's restrictive fiscal and monetary policies appear, their costs are small when compared to the impact of inflation, which falls predominantly on the poorest sectors of the Brazilian population. The popular demand and support for the fight against inflation is so large and overwhelming in Brazil that it is legitimate to say that the government was elected because of the Real Plan. This administration will, therefore, fulfill its essential mission of defending the Plan and of preparing the way for sustained economic growth.