WILL BRAZIL REPEAT PAST MISTAKE?

Faced with inflation of 40,000 percent a year, Brazil in 1986 froze wages and prices and sharply devalued its currency. Unfortunately, the government continued to spend money it did not have. Within a year the anti-inflation plan was a historical footnote.

``We won't make that mistake again,'' vows Ernesto Lozardo, an economic advisor to presidential candidate Fernando Collor de Mello, who is currently leading in the polls for Sunday's election.

Whoever is elected president will have a short honeymoon. ``If something is not done about inflation, the public will call for a new president'' Mr. Lozardo says.