Brazil: monetary policy and the neutral interest rate-Reference-Cited by-同舟云学术

Brazil: monetary policy and the neutral interest rate

Published:2016-11-14 Issue:6 Volume:43 Page:966-979
ISSN:0144-3585
Container-title:Journal of Economic Studies
language:en
Short-container-title:JES

Author:

da Silva Cleomar Gomes,de Araújo Rafael Cavalcanti

Abstract

Purpose The purpose of this paper is to analyze the conduct of monetary policy in Brazil and estimate the country’s neutral real interest rate. Design/methodology/approach The authors make use of a state-space macroeconomic model representation. Findings The period of analysis goes from 2003 up to the end of 2013 and the results show that the country’s natural rate of interest was around 4.2 percent in December 2013. Originality/value One of the main differences of this work is the inclusion of variables such as the real exchange rate and world interest rate. This is important because these variables play an important role in the definition of the interest rate and, consequently, in the definition of the neutral interest rate.

Publisher

Emerald

Subject

General Economics, Econometrics and Finance

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