Indexation and dispersion of relative prices: analysis of the Brazilian case (1975-1991)

Vol. 13 No. 3 (1993)

Jul-Sep / 1993
Published July 1, 1993
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Amadeo, Edward, and Elena Landau. 1993. “Indexation and Dispersion of Relative Prices: Analysis of the Brazilian Case (1975-1991)”. Brazilian Journal of Political Economy 13 (3):472-81. https://doi.org/10.1590/0101-31571993-0682.

Indexation and dispersion of relative prices: analysis of the Brazilian case (1975-1991)

Edward Amadeo
Do Departamento de Economia da Pontifícia Universidade Católica do Rio de Janeiro – PUC-Rio, Rio de Janeiro/RJ, Brasil.
Elena Landau
Do Departamento de Economia da Pontifícia Universidade Católica do Rio de Janeiro – PUC-Rio, Rio de Janeiro/RJ, Brasil.
Brazilian Journal of Political Economy, Vol. 13 No. 3 (1993), Jul-Sep / 1993, Pages 472-481

Abstract

In this paper we attempt to show that the gradual process of indexation which
results from inflationary processes may be responsible for the reduction in the dispersion of
relative prices. We develop a model relating the length of adjustment periods, indexation and
the dispersion of relative prices. Next, we look at the evidences on the behavior of relative
wages in Brazil. We conclude with a discussion of the efficiency of price freezes as a stabilization
strategy.

JEL Classification: E31; E37.


Keywords: Inflation indexation relative prices stabilization