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Indexation and dispersion of relative prices: analysis of the Brazilian case (1975-1991)

Author

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  • Edward Amadeo
  • Elena Landau

Abstract

In this paper we attempt to show that the gradual process of indexation whichresults from inflationary processes may be responsible for the reduction in the dispersion ofrelative prices. We develop a model relating the length of adjustment periods, indexation andthe dispersion of relative prices. Next, we look at the evidences on the behavior of relativewages in Brazil. We conclude with a discussion of the efficiency of price freezes as a stabilizationstrategy. JEL Classification: E31; E37.

Suggested Citation

  • Edward Amadeo & Elena Landau, 1993. "Indexation and dispersion of relative prices: analysis of the Brazilian case (1975-1991)," Brazilian Journal of Political Economy, Center of Political Economy, vol. 13(3), pages 472-481.
    • Handle: RePEc:ekm:repojs:v:13:y:1993:i:3:p:472-481:id:1340
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    More about this item

    Keywords

    Inflation; indexation; relative prices; stabilization;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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