METAS DE INFLAÇÃO E VULNERABILIDADE EXTERNA NO BRASIL
Alexandre Batista Ferreira and
Frederico Gonzaga Jayme Júnior
Authors registered in the RePEc Author Service: Frederico Jayme Jr ()
Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] from ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]
The central purpose of this study is to assess the performance of the inflation targeting regime adopted in Brazil, in a context of high exchange rate volatility, as well as high public debt. In order to accomplish this, a Vector Autoregressive methodology was used. The results suggest that: i) the interest rate is an important instrument of monetary policy; ii) there is presence of inflationary inertia; iii) changes in interest rate to fight inflation can provoke more inflation; iv) the inflation rate is quite sensitive to the exchange rate volatility; v) the inflation rate answers, in way erratic and not significant, to the variations in the government's nominal result; vi) inflation rate response to the innovations in the output gap is not significant; vii) output gap responses to inflation rate shocks does not reveal to be significant; and viii) the monetary policy affects the output gap. The main conclusion is that inflation target in Brazil is limited by the no coordination between monetary and fiscal policies, as well as the external vulnerability.
JEL-codes: E40 E50 E52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba and nep-mac
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:anp:en2005:035
Ordering information: This working paper can be ordered from
Secretaria da ANPEC Rua Tiradentes, 17 - Ingá Niterói, RJ 24210-510 Brazil
Access Statistics for this paper
More papers in Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] from ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] Secretaria da ANPEC Rua Tiradentes, 17 - Ingá Niterói, RJ 24210-510 Brazil. Contact information at EDIRC.
Series data maintained by Hugo E. A. da Gama Cerqueira ().