Taxa de juros e inflação de custos

Abstract

The paper looks at the relation between inflation and the nominal rate of interest, highlighting the existence of an inflation feedback mechanism that works through the interest rate. The working of this mechanism is illustrated in the context of a short-run model that emphasizes the production side. The rate of interest occurs in this model associated with the cost of financing production in the short term. It is shown that an inflationary shock originates, of necessite, a process of inflationary acceleration, which may in some cases degenerate into a hyperinflation.