Vol. 6 No. 2 (1986): Apr-Jun / 1986

Vol. 6 No. 2 (1986)

Apr-Jun / 1986
Published April 1, 1986


Wages and wage policy
Domingo Zurron Ócio
Brazilian Journal of Political Economy

Using an alternative data, we built a General Wage Index for the industry of
transformation, between 1961 and 1984. Its desagregation permited us to analyse the evolution
of real salaries and real wages of the eight professional categories. We verified that
the earnings depend, in the first place, on the conduct of the economic cycle, and secondarily,
on the factors related to the business’ organizational structure, trade-union movement, and
government’s wage policy. The official minimum wage doesn’t seem to determine the wages
rate; its major impact concerns to the informal sector.

JEL Classification: J31; J38.

Kalecki’s investment model: an empirical analysis of the United States, 1948-1980
Ednaldo Araquem da Silva
Brazilian Journal of Political Economy

Though published in the early 1930’s, and despite recent interest in his theory,
Kalecki’s investment model has not been subject to much empirical testing. This paper specifies
a three equation short run version of Kalecki’s investment model and estimates it using
annual U.S. data between 1948-1980. A surprising result is that U.S. economy appears to
have been dynamically unstable in the period analyzed, with cycles of increasing amplitude.

JEL Classification: B51; E22; E32; E11.

The State and the multinational enterprises
Philippe Faucher, Jorge Niosi
Brazilian Journal of Political Economy

The main purpose of this article is to make clear the several types of State intervention
that result in the international expansion of the enterprises. The article retakes
the State’s role within the theory of multinational enterprises. The authors make a study of
multinational public enterprises, identifying them as the most notable case of Government’s
intervention. The increasing number of state enterprises and their international expansion
make the authors to believe it is necessary to make a theoretical revision, putting the State as
the major element of the multinationalization of enterprises.

JEL Classification: H11; F23; L33; P12; L32.

The Hungarian 1945-1946 hyperinflation
Georges Hegedus
Brazilian Journal of Political Economy

This paper provides a description of the Hungarian hyper-inflation in the period
immediately after World War II. It is shown that the inflationary process started with the
necessity of financing the high costs of the war effort. After the war, the reduction of production
capacity, reparation payments, and the large government deficit provided the factors for
the rapid growth of the rate of inflation. Reference is made to the unsuccessful effort to introduce
an indexed currency. The stabilization process is seen as a result of careful planning
and a very harsh redistribution of income among the various social classes.

JEL Classification: E31; N14.

Inertial inflation and Phillips curve
Luiz Carlos Bresser-Pereira, Yoshiaki Nakano
Brazilian Journal of Political Economy

This note introduces the problem of indexation of wages, exchange rate, and
other prices in the Phillips’ curve. With this aim, we developed a simplified model of the
inflationary process decomposing it in (1) inertial inflation; (2) the Phillips’ curve; (3) administered
or supply shock inflation. Using this model, first we show that a supply shock shifts
the Phillips’ curve accelerating the trend rate of inertial inflation. Second, that a continuous
demand pressure through Phillips’ curve leads to continuous acceleration of the rate of inflation.
And third, that a rise in the rate of unemployment may lead to an oligopolistic increase
in the profit margin, which also leads a shift in the Phillips’ curve and an acceleration of

JEL Classification: E31; E24.

The Argentine shock and the Brazilian dilemma
Eduardo Marco Modiano
Brazilian Journal of Political Economy

The application of the so-called “heterodox shock “ anti-inflation policy in Argentina
provoked several discussions about the similarities and differences between Brazilian
and Argentine inflation, and the possibility of its application in Brazil. This article attempts
to examine some of these questions. The analysis emphasizes the question of the lags in the
readjustments of the prices and the contribution of the conversion of prices to the average
values of the period for the stability of the new currency; the question of the synchronization
of wages and prices increases; and the utilization of conversion tables. Finally, the rate of
interest and its relation with the level of economic activity.

JEL Classification: E31.

Notes and Comments

Measuring inflation in Brazil
Francisco Lafaiete Lopes
Brazilian Journal of Political Economy

This note revolves around the issue of measuring inflation. In the first part, it
rememorates the history of inflation indexes to then discuss if the indexes in use in Brazil
are of Snyder type.

JEL Classification: E30; C43; E31.

IGP or IPCA as inflation estimators and indexes in the Brazilian economy
Francisco de Assis Moura de Melo
Brazilian Journal of Political Economy

This note aims to critically analyze the IGP and the IPCA in understanding their
role in measuring the inflation in Brazil.

JEL Classification: E30; C43; E31.

Currency shock in Argentina: orthodox or heterodox?
José Roberto Pacheco
Brazilian Journal of Political Economy

The essence of the Argentine monetary reform lies in the reversal of an acute
inflationary process, using the introduction of a new currency and a set of fixings in the
economy’s key prices.

JEL Classification: E31.

Socioeconomic stratification of household energy consumption in Brazil
Antonio Carlos Bôa Nova
Brazilian Journal of Political Economy

On the midst of discussions of the energetic policy, seldom demand is taken into
consideration. This paper discusses figures regarding the household consumption of energy
and aims to contribute to the formulation of policies that understand the different effects
and what does access to energy mean to the population.

JEL Classification: E94; L98.

The performance of the industrial sector in 1985
Wilson Suzigan, Antonio Kandir
Brazilian Journal of Political Economy

This note analyses the performance of the industrial sector in Brazil. After having
external demand as the main driver in 1984, in 1985 the main driver was internal consumption,
particularly in durable goods and investments.

JEL Classification: L11.

Debt and inflation
Carlos A. Longo
Brazilian Journal of Political Economy

This short note deals with the current situation where most of the public debt in
Brazil is indexed to inflation, which leads to the impossibility by the government of reducing
its debt through monetization.

JEL Classification: E31; H63.

Public debt indexation and monetary reform
Joaquim Elói Cirne de Toledo
Brazilian Journal of Political Economy

This is a response to the note “Dívida e inflação” by Carlos Longo, showcasing
some possible mistakes in the analysis of the effect cost of the public debt.

JEL Classification: E31; H63


Documents on the monetary reform of Argentina
Raul Alfonsín, Juan Sourrouille
Brazilian Journal of Political Economy

This is a compilation of documents and speeches by the president of Argentina
Raul Alfonsín and Minister of Economy Juan Sourrouille about the Austral Plan.

JEL Classification: E31.

Interview on the Austral Plan
Juan Sourrouille
Brazilian Journal of Political Economy

This is an interview given by Minister of Economy Juan Sourrouille about the
Austral Plan.

JEL Classification: E31.