Inflation Targets Regime and global financial cycle: An assessment for the Brazilian economy
| Autor: | Elisangela Luzia Araujo, Eliane Cristina de Araujo, Mateus Ramalho da Fonseca, Pedro Perfeito da Silva |
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| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: | |
| Zdroj: | PSL Quarterly Review, Vol 73, Iss 292, Pp 27-49 (2020) |
| Druh dokumentu: | article |
| ISSN: | 2037-3643 2037-3635 |
| DOI: | 10.13133/2037-3643_73.292_2 |
| Popis: | In light of the global financial cycle (GFC), this paper investigates the effectiveness of monetary policy in Brazil since the adoption of the inflation targeting regime. The theoretical section analyses monetary policy from the New Macroeconomic Consensus perspective, emphasizing the implications of the GFC. It also contrasts central bank theory with the post-Keynesian critique. For the empirical investigation, a Markov-switching vector autoregressive model is estimated from January 2000 to December 2017, combining the common variables from the empirical literature with the proxy for the GFC. The main results suggest that greater financial instability has a direct effect on domestic inflation. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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