Ferreira, Alexandre Batista; Júnior, Frederico Gonzaga … - Associação dos Centros de Pós-Graduação em … - 2005
Autoregressive methodology was used. The results suggest that: i) the interest rate is an important instrument of monetary policy; ii …) there is presence of inflationary inertia; iii) changes in interest rate to fight inflation can provoke more inflation; iv …; and viii) the monetary policy affects the output gap. The main conclusion is that inflation target in Brazil is limited by …