Macroeconomic Performance and Inequality: Brazil 1983-1994

Manoel Bittencourt ()

No 163, Ibero America Institute for Econ. Research (IAI) Discussion Papers from Ibero-America Institute for Economic Research

Abstract: We examine how macroeconomic performance, mainly in the role of high rates of inflation, affected earnings inequality in the 1980s and early 1990s in Brazil. The results–based initially on national timeseries, and then on the relatively novel sub-national panel time-series T N data and analysis–show that the extreme inflation, combined with the incomplete indexation coverage seen at the time, had a regressive and significant impact on inequality. Thus, sound macroeconomic policies, which keep inflation low and stable in the long run, are to be a necessary first step of any policy package implemented to alleviate inequality in Brazil.

Keywords: Brazil; inequality; inflation; indexation (search for similar items in EconPapers)
JEL-codes: D31 E31 O11 O54 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2007-10-10
New Economics Papers: this item is included in nep-dev and nep-mac
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:got:iaidps:163

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