The theory of inertial inflation: a brief history

Vol. 43 No. 2 (2023)

Apr-Jun / 2023
Published May 10, 2023

How to Cite

Bresser-Pereira, Luiz Carlos. 2023. “The Theory of Inertial Inflation: A Brief History”. Brazilian Journal of Political Economy 43 (2):480-98.

The theory of inertial inflation: a brief history

Luiz Carlos Bresser-Pereira
Emeritus Professor at Fundação Getulio Vargas, São Paulo/SP, Brazil.
Brazilian Journal of Political Economy, Vol. 43 No. 2 (2023), Apr-Jun / 2023, Pages 480-498


This paper is the history of how the theory of inertial inflation was developed
in Brazil in the early 1980s, when inflation was very high, much higher than the stagflation
that happened in the United States in the previous decade. Perhaps this fact explains why
the theory was formulated in Brazil and not in the United States. The main papers and the
book that defined the new theory are duly referred. And the author, that in the 1980s and
1990s was a political actor, also tells the history of the application of the theory, the failures
and successes.

JEL Classification: E31; B22.

Keywords: Inflation inertia indexation stabilization plan