Abstract

The objective of this paper is to test empirically the theoretical formulation of
Bresser-Pereira & Nakano’s article, “The accelerating, maintaining and sanctionating factors
of inflation” (1984). The empirical test supports the results of their theoretical study. The role
of the distributive conflict as a maintaining factor in the inflation process stands out since past
inflation creates strong downward price rigidity. Another hypothesis that was shown to be
consistent refers to the character of money as it represents an endogenous variable in the system.

JEL Classification: E31; E37.