Accelerating, maintaining and sanctioning factors of inflation: a test of empirical evidence for Brazil

ABSTRACT The objective of this paper is to test empirically the theoretical formulation of Bresser-Pereira & Nakano’s article, “The accelerating, maintaining and sanctionating factors of inflation” (1984). The empirical test supports the results of their theoretical study. The role of the distributive conflict as a maintaining factor in the inflation process stands out since past inflation creates strong downward price rigidity. Another hypothesis that was shown to be consistent refers to the character of money as it represents an endogenous variable in the system.