Guillén, Osmani Teixeira de Carvalho de; Araújo, … - Associação dos Centros de Pós-Graduação em … - 2005
This article uses a Vector Error Correction Model (VECM) framework to study exchange rate pass-through to producer and consumer prices in Brasil. We identify two long-run and one short-run relations in data. We calculate the impulse-response function of domestic prices to exchange rate shock....