Inflation and economic growth in an open developing country: the case of Brazil

baltar, carolina troncoso;

This articles studies the relationship between inflation and GDP growth after trade
and financial liberalisation in Brazil. The aim is to provide an explanation for the
inverse relationship between economic growth and inflation verified in this economy in
the considered period. Tradeable and non-tradeable inflation experiences are studied
separately for this purpose. The article suggests a model for the relationship between
inflation and economic growth under the cost-based price approach. The model is
estimated for the case of Brazil, confirming the relationships postulated in the article.