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Macroeconomic Performance and Inequality: Brazil 1983-1994

  • Manoel Bittencourt


    (School of Economics, University of Cape Town / South Africa)

We examine how macroeconomic performance, mainly in the role of high rates of inflation, affected earnings inequality in the 1980s and early 1990s in Brazil. The results–based initially on national timeseries, and then on the relatively novel sub-national panel time-series T  N data and analysis–show that the extreme inflation, combined with the incomplete indexation coverage seen at the time, had a regressive and significant impact on inequality. Thus, sound macroeconomic policies, which keep inflation low and stable in the long run, are to be a necessary first step of any policy package implemented to alleviate inequality in Brazil.

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Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 163.

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Length: 30 pages
Date of creation: 10 Oct 2007
Date of revision:
Handle: RePEc:got:iaidps:163
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