Luiz Carlos Bresser-Pereira
In José Marcio Rego, org. (1989) Aceleração Recente da Inflação. S.Paulo, Editora Bienal: 3-10. Also in Folha de São Paulo, 1.9.1988.
Abstract. While hyperinflation increases at explosive rates, inertial inflation also accelerates but gradually, by stages. In the formulation of inertial inflation's theory a decisive step was the distinction among inflation's validating, sustaining, and accelerating factors. Inertial inflations tend to gradually accelerate because, in the distributive conflict that is behind it, economic agents tend, in a first moment, when the rate of inflation is still low, to increase their prices according to cost increases; in a second moment, they informally indexate their prices to the rate of inflation; and, in a third, they start to indexate their prices to the prices of the sectors that are being able to increase their own prices more aggressively.
