Effects of monetary policy transmission mechanism on car sales in Brazil after the real plan

Abstract

The study aims to evaluate the effects of monetary policy transmission mechanism in car sales in Brazil, after the Real Plan. The representativeness of the auto industry in the Brazilian economy is significant. Therefore, to provide an analysis of the actions of monetary policies on car sales is essential to define schedules in the industry. Thus, the methodology been based on the use of Vector Auto Regressive (VAR) with a Vector Error Correction Model (VECM), supported by econometric tests. The results showed that there is a relationship of monetary policy actions in car sales in Brazil.