The paper analyzes the rise of the Latin American-based inertial inflation theory. Starting in the 1950s, various traditions in economics purported to explain the concept of “inflation inertia”. Contributions ranging from Celso Furtado and M.H. Simonsen to James Tobin anticipated key aspects...

This paper aims to contribute to the literature on the intellectual history of the economics discipline by delving into the history of the the sawtooth wages model, namely: the behavior of periodically-adjusted fixed nominal wages under persistent inflationary conditions. Ranging from the...

The paper analyzes some of the structural causes of inflationary persistence in Brazil in the post-Real plan period, in contrast to the Brazilian Central Bank’s view on the causes of inflation, particularly in what concerns its inertial component. It begins with a historical perspective on the...

The paper focuses some of the non-monetary structural causes of inflationary persistence in Brazil in the post-Real plan period. A connection is made between the de-industrializing trend and the emergence of primary pressures that set a floor to inflation levels. The framework is set up in terms...