Notes on the Brazilian inflationary process: 1986-1991

Vol. 13 No. 2 (1993)

Apr-Jun / 1993
Published April 1, 1993
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Luque, Carlos Antonio. 1993. “Notes on the Brazilian Inflationary Process: 1986-1991”. Brazilian Journal of Political Economy 13 (2):216-31.

Notes on the Brazilian inflationary process: 1986-1991

Carlos Antonio Luque
Professor de Economia e Administração da Faculdade de Economia e Administração da Universidade de São Paulo – FEA/USP, São Paulo/SP, Brasil. Pesquisador da Fundação Instituto de Pesquisas Econômicas - FIPE
Brazilian Journal of Political Economy, Vol. 13 No. 2 (1993), Apr-Jun / 1993, Pages 216-231


The aim of this essay is to examine the 1986-91 Brazilian inflationary process.
This essay will take the broadest analytical line, considering the inflationary process resulting
from the evolutionary dynamics of the elements that affect the aggregate supply and
demand. Regarding the aggregate demand shifts we emphasize the relationships between
fiscal and monetary policies. We stressed that the impact of public sector deficit has been
seen much more as a financing problem rather than the result of its levels. Regarding costs
we emphasize the role of the relative price of competitive sectors that are more important in
determining real wages and those of the oligopolistic sector. Our study seems to suggest that
the causes of Brazilian inflationary process are many and complex and their solution do not
depend solely upon the squeeze of the public sector deficit.

JEL Classification: E31.

Keywords: Inflation stabilization