Pressure groups and inflation: a cyclical model

Vol. 16 No. 3 (1996)

Jul-Sep / 1996
Published July 1, 1996
PDF-English
PDF-English

How to Cite

Arbache, Jorge Sabe, and João Ricardo Faria. 1996. “Pressure Groups and Inflation: A Cyclical Model”. Brazilian Journal of Political Economy 16 (3):467-74. https://doi.org/10.1590/0101-31571996-0892.

Pressure groups and inflation: a cyclical model

Jorge Sabe Arbache
Departamento de Economia, Universidade de Brasília – UnB, Brasília/DF, Brasil.
João Ricardo Faria
Departamento de Economia, Universidade de Brasília – UnB, Brasília/DF, Brasil.
Brazilian Journal of Political Economy, Vol. 16 No. 3 (1996), Jul-Sep / 1996, Pages 467-474

Abstract

This text presents arguments according to which the pressures of organized
groups – but which act in an uncoordinated way – on government decisions related to fiscal
issues, cause an increase in inflation, at the same time that they favour the disorganization
of the economy. This last effect imposes limits on the behavior of these groups. A “preypredator”
model is used to describe the cyclical correction between the level of organization
of such groups and inflation

JEL Classification: E31; D72.


Keywords: Inflation political economy lobby groups prey-predator model