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Pressure groups and inflation: a cyclical model

Author

Listed:
  • Jorge Sabe Arbache
  • João Ricardo Faria

Abstract

This text presents arguments according to which the pressures of organizedgroups – but which act in an uncoordinated way – on government decisions related to fiscalissues, cause an increase in inflation, at the same time that they favour the disorganizationof the economy. This last effect imposes limits on the behavior of these groups. A “preypredator”model is used to describe the cyclical correction between the level of organizationof such groups and inflation JEL Classification: E31; D72.

Suggested Citation

  • Jorge Sabe Arbache & João Ricardo Faria, 1996. "Pressure groups and inflation: a cyclical model," Brazilian Journal of Political Economy, Center of Political Economy, vol. 16(3), pages 467-474.
    • Handle: RePEc:ekm:repojs:v:16:y:1996:i:3:p:467-474:id:1217
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1217/1202
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    More about this item

    Keywords

    Inflation; political economy; lobby groups; prey-predator model;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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