An Evaluation of the Tolerant to Higher Inflation Rate in the Short Run by the Brazilian Central Bank in the Period 2001-2012

Moreira, Tito Belchior Silva; Souza, Geraldo da Silva e; Ellery, Roberto

doi:10.2139/ssrn.2293376

Cited by 1 publication

(3 citation statements)

References 23 publications

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“…The empirical results show that fiscal policy was passive in the fiscal years from 2003to 2009and 2012. In 2010, 2013and 2014 there is empirical evidence of fiscal dominance (see table 5).…”

Section: Figurementioning

confidence: 96%

“…However, starting at the time of the subprime crisis, economic policymakers began to gradually dismantle the macroeconomic tripod. See more details in Moreira and Soares (2012) and Moreira, Souza and Ellery (2013). Starting in mid-July 2007, inflation trends upwards, to reach 9.03% December 2015.…”

Section: Figurementioning

confidence: 99%

“…With a similar aim, Moreira, Souza and Ellery (2013) analyse the degree of tolerance to inflation by the presidents of the Central Bank of Brazil in the period 2001-2012. Their results show that Henrique Meirelles was the least tolerant to higher inflation, compared with Armínio Fraga.…”

Section: Monetary Response Functionmentioning

confidence: 99%

See 2 more Smart Citations

Fiscal and monetary policy rules in Brazil: empirical evidence of monetary and fiscal dominance

2022

CEPAL Review

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Based on the hypothesis that the rules of monetary and fiscal policy in Brazil may have been subject to different regimes, the present study applies the Leeper model (1991 and 2005) to identify the chronology of policy regimes in terms of their active and passive character. The policy rules are estimated using the Markov-switching model, with a monthly database from November 2002 to December 2015, in which the regimes are endogenously determined. The results obtained indicate that fiscal dominance occurred in 2010 and between 2013 and 2014, while monetary dominance marked much of 2003 and the period 2005-2007. The model also seeks to explain why the inflation rate continued to rise during 2015 even though Central Bank of Brazil took an active monetary policy stance that year.

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