Transmission of monetary policy through the wealth channel in Brazil: Does the type of asset matter?

Jose Rossi, Marina Delmondes de Carvalho (marinadcrossi@gmail.com) and Daniel Carvalho Cunha

Research in International Business and Finance, 2019, vol. 50, issue C, 279-293

Abstract: This paper studies the transmission of the monetary policy through the wealth channel in Brazil. Using a structural Bayesian model, we analyze the importance of the different components of wealth in the transmission of the monetary policy in Brazil. The paper finds that the wealth effect works in Brazil only through the evolution of real estate prices. Both, public debt and stock market wealth, play no role in the transmission of monetary policy in Brazil. In the case of public debt, unlike what is argued in the literature, the paper finds that the existence of public debt indexed to the short-term policy rate has no impact in the relevance of the wealth effect of government bonds.

Keywords: Public debt; Housing market; Wealth effect; Monetary policy (search for similar items in EconPapers)
JEL-codes: E21 E44 H63 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531918309619
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:50:y:2019:i:c:p:279-293

DOI: 10.1016/j.ribaf.2019.06.009

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).