Pressure groups and inflation: a cyclical model

Jorge Sabe Arbache () and João Ricardo Faria ()

Brazilian Journal of Political Economy, 1996, vol. 16, issue 3, 467-474

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.

Keywords: Inflation; political economy; lobby groups; prey-predator model (search for similar items in EconPapers)
Date: 1996
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