Vol. 4 No. 1 (1984)
Jan-Mar / 1984
Published January 1, 1984
How to Cite
Bresser-Pereira, Luiz Carlos, and Yoshiaki Nakano. 1984. “Accelerating, Maintaining and Sanctionating Factors of Inflation”. Brazilian Journal of Political Economy 4 (1):3-19. https://doi.org/10.1590/0101-31571984-1005.
Accelerating, maintaining and sanctionating factors of inflation
Abstract
In order to understand inflation or stagflation in present-day oligopolistic capitalism,
it is necessary to distinguish the accelerating, maintaining and sanctionating factors
of inflation. Four are the accelerating factors: change in profit margins, change in real wages
above (or below) productivity, changes in the real exchange rate, and in the costs of imports.
The basic maintaining factors are formal and informal indexation of the economy and markup
pricing. Given an autonomous inflation, that is, independent of sustained demand or full
employment, the fundamental sanctionating factor of inflation will be the money supply.
JEL Classification: E31; E12.
Keywords: Inflation stabilization