Luiz Carlos Bresser-Pereira
In José Marcio Rego, org. (1989) Aceleração Recente da Inflação.S.Paulo, Editora Bienal: VII-XXII.
Abstract. While for the São Paulo (FGV) group inertial inflation derives from the distributive conflict, for the Rio (PUC) group it is just originated in the staggered character of price increases. This difference leads Bacha to define a third type of inflation besides the usual one and the inertial to understand its acceleration - what is not necessary for the São Paulo group. In inertial inflation the accelerating factors are endogenous, not exogenous. In order to control inflation conventional monetary and fiscal policies will not work. Yet, after inertia is neutralized though a heterodox chock a stern fiscal policy will be required.
