BRAZILIAN ECONOMY

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The theory of inertial or autonomous inflation

Luiz Carlos Bresser-Pereira and Yoshiaki Nakano

Chapter 3 of Bresser-Pereira and Nakano, The theory of inertial inflation. Boulder, Co: Lynne Rienner, 1987: 65-82. Translation of "Fatores aceleradores, e mantenedores da inflação"(1983).

One must distinguish the accelerating from the maintaining and the sanctioning factors of inflation. Money is an essentially sanctioning factor to the extent that it is endogenous. The maintaining factor is formal and informal indexation. The accelerating factors vary