Phillips’ curve and brazilian economy: time period from 1991 to 2002

Abstract

This paper demonstrates how Phillips´ curve can be useful for analyzing Brazilian economy. It distinguishes two theoretical versions of Phillips´ curve: the original and the modified one. It also discusses articles that analyzed the application of the Phillips´ curve to the Brazilian economy, pointing out the contribution of this paper. That contribution is the analysis of shape and econometric adjustment of modified Phillips´ curve for Brazilian economy. This time period is characterized by two phases of inflation rate behavior. The first phase is characterized by high monthly inflation rates, followed by low monthly inflation rates during the second phase.