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Distribution and Conflict Inflation in Brazil under Inflation Targeting, 1999–2014

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  • Ricardo Summa
  • Franklin Serrano

Abstract

In this paper, we analyze Brazilian inflation under the inflation-targeting system from a conflict inflation perspective and show how the inflation target system only worked well when there was a trend of exchange rate appreciation. Later, the strengthening of the bargaining power of workers and rising real wages since 2006, combined with continuous nominal exchange rate depreciation after mid-2011, increased distributive conflicts and are ultimately behind the recent shift toward austerity.

Suggested Citation

  • Ricardo Summa & Franklin Serrano, 2018. "Distribution and Conflict Inflation in Brazil under Inflation Targeting, 1999–2014," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(2), pages 349-369, June.
    • Handle: RePEc:sae:reorpe:v:50:y:2018:i:2:p:349-369
    DOI: 10.1177/0486613417691787
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    References listed on IDEAS

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    4. David G. Blanchflower & Andrew J. Oswald, 2005. "The Wage Curve Reloaded," NBER Working Papers 11338, National Bureau of Economic Research, Inc.
    5. Michal Kalecki, 1971. "Class Struggle And The Distribution Of National Income," Kyklos, Wiley Blackwell, vol. 24(1), pages 1-9, February.
    6. Marc Lavoie, 2000. "A Post Keynesian View of Interest Parity Theorems," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 23(1), pages 163-179, September.
    7. Rowthorn, R E, 1977. "Conflict, Inflation and Money," Cambridge Journal of Economics, Oxford University Press, vol. 1(3), pages 215-239, September.
    8. Antonella Stirati, 2001. "Inflation, Unemployment and Hysteresis: An alternative view," Review of Political Economy, Taylor & Francis Journals, vol. 13(4), pages 427-451.
    9. Ricardo Summa, 2016. "An alternative model to the open-economy "new consensus" for the analysis of inflation targeting," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 17(3), pages 310-323.
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    More about this item

    Keywords

    conflict inflation; inflation target system; functional income distribution; Brazilian economy;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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