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Type: Artigo de periódico
Title: Exchange rate movements and monetary policy in Brazil: Econometric and simulation evidence
Author: Furlani, LGC
Portugal, MS
Laurini, MP
Abstract: The literature on monetary economy has aroused growing interest in macroeconomics. Due to computational advancements, models have become increasingly more complex and accurate, allowing for an in-depth analysis of the relationships between real economic variables and nominal variables. Therefore, using a dynamic stochastic general equilibrium (DSGE) model, based on Gali and Monacelli (2005), we propose and estimate a model for the Brazilian economy by employing Bayesian methods so as to assess whether the Central Bank of Brazil takes exchange rate fluctuations into account in the conduct of monetary policy. The most striking result of the present study is that the Central Bank of Brazil does not directly change the interest rate path due to exchange rate movements. A simulation exercise is also used. Our conclusion is that the economy quickly accommodates shocks induced separately on the exchange rate, on the terms of trade, interest rate, and global inflation. (C) 2009 Elsevier B.V. All rights reserved.
Subject: Dynamic and stochastic general equilibrium (DSGE) models
Monetary policy
Exchange rate
Bayesian methods
Country: Holanda
Editor: Elsevier Science Bv
Citation: Economic Modelling. Elsevier Science Bv, v. 27, n. 1, n. 284, n. 295, 2010.
Rights: fechado
Identifier DOI: 10.1016/j.econmod.2009.09.008
Date Issue: 2010
Appears in Collections:Unicamp - Artigos e Outros Documentos

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