Abstract
This article presents a model in which distributional conflict and cross-sectoral interactions between demand and supply side forces determine inflation in developing countries. We show that the standard macroeconomic policy recommendations of inflation targeting and balanced budgets (i) increase volatility by amplifying external shocks and (ii) can lead to premature deindustrialization. The recent Brazilian experience is used to illustrate the argument.
Original language | English |
---|---|
Journal | Industrial and Corporate Change |
Volume | 30 |
Issue number | 2 |
Pages (from-to) | 409-444 |
Number of pages | 36 |
ISSN | 0960-6491 |
DOIs | |
Publication status | Published - 1 Apr 2021 |
Bibliographical note
Publisher Copyright:© 2021 The Author(s) 2021. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.
Keywords
- E63
- O14
- O23