Pressure groups and inflation: A cyclical model

Grupos de pressão e inflação: um modelo cíclico

ABSTRACT

This text presents arguments according to which the pressures of organized groups - but which act in an uncoordinated way - on government decisions related to fiscal issues, cause an increase in inflation, at the same time that they favour the disorganization of the economy. This last effect imposes limits on the behavior of these groups. A “prey-predator” model is used to describe the cyclical correction between the level of organization of such groups and inflation.

KEYWORDS:
Inflation; political economy; lobby groups; prey-predator model