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The Impact Of The 2007-08 Food Price Crisis In A Major Commodity Exporter: Food Prices, Inflation, And Inclusion In Brazil

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  • Bernardo Mueller
  • Charles C. Mueller

Abstract

This paper argues that the effects of the food price crisis of 2007-08 put pressure on two variables that are of central importance to the Brazilian government: inflation and social inclusion. We describe how political institutions in Brazil in the past 25 years have given rise to a policy-making process where fiscal stability and social inclusion are the overarching priorities, irrespective of the party in power. In this scenario one would have expected that the food price crisis would have led to significant reactions by the government to safeguard those two central policy objectives.

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  • Bernardo Mueller & Charles C. Mueller, 2012. "The Impact Of The 2007-08 Food Price Crisis In A Major Commodity Exporter: Food Prices, Inflation, And Inclusion In Brazil," WIDER Working Paper Series wp-2012-095, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2012-095
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2012-095.pdf
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    1. Francisco H. G. Ferreira & Anna Fruttero & Phillippe G. Leite & Leonardo R. Lucchetti, 2013. "Rising Food Prices and Household Welfare: Evidence from Brazil in 2008," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 151-176, February.
    2. Lee J. Alston & Bernardo Mueller, 2006. "Pork for Policy: Executive and Legislative Exchange in Brazil," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 22(1), pages 87-114, April.
    3. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422.
    4. North,Douglass C. & Wallis,John Joseph & Weingast,Barry R., 2013. "Violence and Social Orders," Cambridge Books, Cambridge University Press, number 9781107646995.
    5. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    6. Hausmann, Ricardo, 2008. "Is Search of the Chains That Hold Brazil Back," Working Paper Series rwp08-061, Harvard University, John F. Kennedy School of Government.
    7. Danuta Chmielewska & Darana Souza, 2011. "The Food Security Policy Context in Brazil," Research Report 22, International Policy Centre for Inclusive Growth.
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    Cited by:

    1. Shane Bryan, 2013. "A Cacophony of Policy Responses: Evidence from Fourteen Countries During the 2007/08 Food Price Crisis," WIDER Working Paper Series wp-2013-029, World Institute for Development Economic Research (UNU-WIDER).
    2. Derrill D. Watson, 2013. "Political Economy Synthesis: the Food Policy Crisis," WIDER Working Paper Series wp-2013-050, World Institute for Development Economic Research (UNU-WIDER).
    3. Bryan, Shane, 2013. "A Cacophony of Policy Responses: Evidence from Fourteen Countries During the 2007/08 Food Price Crisis," WIDER Working Paper Series 029, World Institute for Development Economic Research (UNU-WIDER).
    4. Watson, Derrill D., 2013. "Political Economy Synthesis: the Food Policy Crisis," WIDER Working Paper Series 050, World Institute for Development Economic Research (UNU-WIDER).
    5. Kenneth Baltzer, 2013. "International to Domestic Price Transmission in Fourteen Developing Countries During the 2007-08 Food Crisis," WIDER Working Paper Series wp-2013-031, World Institute for Development Economic Research (UNU-WIDER).
    6. Baltzer, Kenneth, 2013. "International to Domestic Price Transmission in Fourteen Developing Countries During the 2007-08 Food Crisis," WIDER Working Paper Series 031, World Institute for Development Economic Research (UNU-WIDER).

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