Adjustment policies and the agriculture-industry relations in Brazil

Abstract

This paper shows the relationship between the economic activity level and relative
prices in Brazil during the 80’s. In these two sectors model the monthly computed economic
variables are: index of industrial production, index of agricultural prices and index of
industrial prices. These variables were seasonally adjusted. The result suggests that agricultural
prices decrease relatively to industrial prices during periods of economic crises, while
the agricultural prices increase relatively to industrial prices during periods of economic
growth, accordingly to the model used on the analysis.

JEL Classification: Q11; E31.