Bernadete Lourdes de Sousa

In this work we present an analysis on the main models about inflationary processes in different economies. Then, we make some applications to the Brazilian economy, from 1974 to 1998. Our objective is to identify empirically the theoretical foundations of the Brazilian inflation. Moreover, we accomplish empiric verification of specific models for Brazil. In accordance with Bresser Pereira & Nakano (1984), Lopes (1984), and Resende (1984), the Brazilian inflation was inertial. In agreement with the empirical reference of Gualda (1992), we test two equations. One relating the accelerating factors of inflation, and the other to the hypothesis of inertial inflation. The adjusted determination coefficient of the first and second equation aim a solemnity explanation degree. Therefore, the variation of the exchange rate, of the interest rate, of the tributes, and of the wage rate explain the acceleration of inflation in the Brazilian economy in the period. For the second equation, we made several tests, and in a general way it proves that the lagged inflation rate in a period largely explains the inflation Brazilian between 1974 and 1994. Besides, the variations of exchange rate, of the interet rate,of tributes, and of wages were also important.