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Ajustamento externo, financeirização dos preços e inflação [External adjustment, 'financially-based price formation', and inflation]


  • Otaviano Canuto

    () (Universidade de São Paulo - USP)

  • Antonio José Meirelles

    () (Universidade Estadual de Campinas - Unicamp)


This paper develops a simple structuralist model to deal with the relationships between inflation and external adjustment policies in foreign-indebted economies facing strong reversals in capital inflows. Taking Latin American experiences in the eighties as a reference, the model attempts to systematize the so-called hypothesis of 'financially- based price formation', namely, the regime of price formation through which both real interest rates and inflation rates moved together upwards as a response to increasing pressures for transfer abroad of real resources as a means of debt servicing.

Suggested Citation

  • Otaviano Canuto & Antonio José Meirelles, 2001. "Ajustamento externo, financeirização dos preços e inflação [External adjustment, 'financially-based price formation', and inflation]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 11(2), pages 31-50, December.
  • Handle: RePEc:nov:artigo:v:11:y:2001:i:2:p:31-50

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    References listed on IDEAS

    1. Canuto, Otaviano & Holland, Márcio & Xavier, Clésio, 1998. "Taxas de Câmbio, Elasticidades-renda e Saldo Comercial na Economia Brasileira," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 52(2), April.
    2. Blecker, Robert A, 1989. "International Competition, Income Distribution and Economic Growth," Cambridge Journal of Economics, Oxford University Press, vol. 13(3), pages 395-412, September.
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    More about this item


    structuralist macroeconomics; inflation; external adjustment;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements


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