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Wages, inflation and distributive conflict: reflections on the sliding scale

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  • Fábio Giambiagi

Abstract

This article tries to show some of the potential problems that appear with theadoption of the automatic mechanism of wage increase known as “trigger point indexation”.Theories about distributive conflict are the basis to describe the way the inflationary dynamicbehaves in a system of wage periodical indexation, which is compared with the “triggerpoint “ system. The main conclusion is that if the government don’t manage to control pricesstrictly, the menace of an acceleration of inflation is considerable. ln this context, the articlealso discusses some of the different sceneries for the Brazilian economy that may be foreseenfor the next future as a consequence of the conflicts observed now. JEL Classification: J38; J31.

Suggested Citation

  • Fábio Giambiagi, 1988. "Wages, inflation and distributive conflict: reflections on the sliding scale," Brazilian Journal of Political Economy, Center of Political Economy, vol. 8(3), pages 406-420.
    • Handle: RePEc:ekm:repojs:v:8:y:1988:i:3:p:406-420:id:1105
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1105/1090
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    More about this item

    Keywords

    Wage; wage policy; inflation;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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