摘要：The article presents an empirical test of the hypothesis that productivity expansions are the answer to the inflation problems experienced by the Brazilian economy. The study obtained evidence from the estimation of a Structural Autoregressive Vector (SVAR) model for the period after December 2009, which confirmed the existence of an inverse relationship between inflation and productivity in Brazil’s manufacturing industry. However, this relationship is inelastic; that is, Brazilian entrepreneurs tend to convert productivity gains into mark-up instead of passing them on to prices. Thus, productivity increases yield smaller inflation control effects than expected.
