@article{Bresser-Pereira_1996, title={Deciphered inflation}, volume={16}, url={https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1219}, DOI={10.1590/0101-31571996-0955}, abstractNote={<p>This paper is an account of the intellectual process that led, in the early 1980s, to<br />the definition of a new economic theory – the theory inertial inflation – and to the proposal<br />of heterodox policies to deal with this type of high and chronic inflation, that, in intensity<br />terms, stays between moderate or usual inflation and hyperinflation. The theory says that<br />this type of inflation is the consequence of phased or staggered price adjustments. Economic<br />agents are involved in an endless process of balancing and unbalancing relative prices, as<br />they keep up with the going inflation, formally or informally indexing their prices. To fight<br />this type of inflation orthodox or conventional fiscal and monetary policies are insufficient.<br />In addition, it is necessary to adopt a heterodox mechanism that neutralizes inertia, making<br />possible to stop inflation. It is part of a book in preparation where the author reports his<br />experience as finance minister of Brazil in 1987.</p> <p><strong>JEL Classification:</strong> E31; B22.</p>}, number={4}, journal={Brazilian Journal of Political Economy}, author={Bresser-Pereira, Luiz Carlos}, year={1996}, month={Oct.}, pages={515-531} }