Caldeira, João; Furlani, Luiz - In: Economics Bulletin 31 (2011) 2, pp. 1379-1390
This paper examines, for the Brazilian case, if break-even inflation rates (BEIR) extracted from fixed income … securities are an unbiased estimator of consumer inflation, measured by the CPI. Our estimates suggest that BEIRs are informative … about future inflation, especially for the maturity of three months. The main innovation of our work, however, is the method …