Sandro, not "probably not" but certainly not. The "excuse" for the high & rising inflation of the 70s and 80s in Brazil was that it reflected "distributional conflicts". In short: To keep the room continuously warm, you have to keep feeding logs to the fireplace!
Sandro, not "probably not" but certainly not. The "excuse" for the high & rising inflation of the 70s and 80s in Brazil was that it reflected "distributional conflicts". In short: To keep the room continuously warm, you have to keep feeding logs to the fireplace!
Agreed. Put the "probably" there since the example Blanchard provides *can* result in "transitory inflation" (a one-time rise in the price level).