This paper studies the relation between inflation and economic development. The literature is largely silent regarding both the theoretical and empirical perspectives that undeveloped countries endure higher average inflation than developed economies. We present a simple theoretical model linking the inflation phenomenon to the tradition of development economics. Empirical evidence is garnered to test the hypothesis that economic development engenders a downward bias to inflation rates. Through the feasible-GLS estimator in a panel of 65 countries from 2001 to 2011, we aim at listing a number of variables most commonly used to explain differences in the stage of economic development across countries and identifying the most statistically relevant ones to account for differences in inflationary patterns. While our results show that inflation is inversely correlated with the level of the technological content of the economy (measured by share of high-tech exports), human capital and cyclical unemployment, it is directly related to the degree of inflation persistence and terms of trade growth. However, our findings still present an inverse and low correlation between inflation persistence and economic development, implying that development-sensitive variables allowed into the model can only partially account for the differences in inflation at different levels of economic development.
JEL CLASSIFICATION
n16; o54ARTICLE HISTORY
A proposta Bresser-Nakano deflagrou uma forte discussão sobre a política de juros no Brasil, suscitando uma série de críticas e contribuições para o seu aperfeiçoamento. Seu argumento central baseia-se na suposição de que o sentido da causalidade vai da taxa de juros para o prêmio de risco, e não o contrário. Com isso, a autoridade monetária, ao reduzi-la, promove um círculo virtuoso na economia, reduzindo o prêmio de risco e, através da taxa de câmbio, a própria inflação. Essa hipótese, no entanto, continua controversa e carece de estudos empíricos visando à sua verificação. O objetivo principal deste trabalho é investigar a sua validade para a economia brasileira nos últimos 10 anos de política monetária. Aplicando testes de causalidade de Granger, os resultados encontrados apóiam a hipótese Bresser-Nakano.
The strong performance of the Brazilian economy during the 2000s allows the expansion of various sectors, including the advertising market, associated with the growth of the domestic market and the intensification of trade relations with other countries. The main objective of this study is to test the Relative Constancy Principle (RCP) in the context of greater integration with international economy, controlling for several factors that may exhibit some influence on the performance of the advertising market. We adopt a panel data of two periods for 49 countries and estimate a linear fixed effects model with dummies, controlling for the heterogeneity and unobserved factors of the countries. The results suggest that the advertising market of China, the United States and India have significant patterns above the average. The study does not support the RCP, yet they identify important regularities in those countries in relation to the advertising market. The level of activity and international reserves have a significant effect on the advertising market in countries; the higher the share of industry and services (urbanization), the higher the expenses on advertising; the inflation rate is nonlinearly related to the advertising market performance; the economic freedom index and the presence of Generations X and Y are associated with a reduction in advertising expenditure.
Este artigo analisa a dinâmica da inflação brasileira a partir de uma estrutura fracionária com mudança de regime markoviana, MS-ARFIMA, fornecida por Tsay & W. (2009). A vantagem dessa metodologia em relação a outras abordagens é a estimação simultânea das prováveismudanças de regime e do coeficiente fracionário, d, que expressa amemória de longo prazo (inércia) da inflação brasileira. Os principais resultados sugerem a vigência de dois regimes distintos, sendo que o regime de baixa inflação é o mais persistente. Conclui-se também que a memória de longo prazo da inflação é sensível a mudanças de regime The main goal of this paper is search for the long run dependence in the Brazilian inflation rate allowing regime switching by the MS-ARFIMA model. The principal contribution of this paper is the simultaneous and consistent estimation of longmemory coefficient d and the several regimes that encompass them. The results enable us to conclude that there were two regimes in the Brazilian economy with high persistence: hyperinflation regime and low inflation regime. The long run memory of inflation rate is dependent upon regime switching. The low inflation regime is the more persistent one
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