Empirical analysis of the effects of inflation on growth economic and variability of relative prices

• Autor(a) principal: Leonardo Porto Freire
• Data de Publicação: 2009
• Tipo de documento: Tese
• Idioma: por
• Título da fonte: Biblioteca Digital de Teses e Dissertações da UFC
• Texto Completo: http://www.teses.ufc.br/tde_busca/arquivo.php?codArquivo=3862
• topic: CIENCIAS SOCIAIS APLICADAS

This study examines the existence of nonlinearities on the relationships between inflation, economic growth and the relative prices variability (RPV) in Brazil. It also assesses the effects of the Brazilian stabilization program, known as âPlano Realâ, on the relationship between inflation and economic performance. The analysis employs time series models that allows threshold effects (for analysis of relationship between inflation and economic growth; and inflation and RPV) and panel data models that allows threshold effects and structural break (on the analysis for relationship between inflation and economic growth). Considering the relation between inflation and growth, the results shows that relationship between inflation and economic growth would be negative only above a certain level of inflation, which confirms the findings of some empirical studies of economic literature. The results also show change evidences in relation between inflation and economic growth after âPlano Realâ, probably because of changes in economy promoted by this policy. As for the relation between inflation and RPV in Brazil, the findings indicate that inflation would have a positive relationship with the RPV. However, this relationship shows a nonlinear behavioral standard in the sense that this would be more positive and significant above a certain level of inflation.