This paper presents a small-scale structural model to the Brazilian economy with an external block. The nominal exchange rate forecast is based on an uncovered interest rate, which is estimated in monthly terms since the switching of the exchange regime in 1999. As a risk premium measurement,...

This paper develops a demand model for bank loans with a two-step decision process. In the first step, the agent chooses the financial institution from which she would like to borrow. In the second step, conditioned in the first decision, the agent chooses the desired amount of the loan. The...

This paper assesses the challenges faced by the inflation-targeting regime in Brazil. The confidence crisis in the future performance of the Brazilian economy and the increase in risk aversion in international markets were responsible for a sudden stop of capital inflows in 2002 that caused a...

The aim of the present research is to build an open economy recursive general equilibrium model for the Brazilian economy in order to numerically assess the corresponding steady state equilibrium. This characterization allows us to numerically compute the endogenously determined steady state key...

Despite the difficulties involved in the precise determination of equilibrium real interest rates, it seems clear that nominal interest rates has been higher in Brazil than in similar emerging economies. This paper aims to shed light on the possible reasons for this feature of the Brazilian...

This paper aims to compare the interest rates charged by credit unions and banks (commercial and multiple) in order to check whether there are differences between the rates charged for loans without personal assignment and the effects of this difference in interest rates charged by banks in...

This study proposes a new methodology called Canonical FAVAR that incorporates the canonical correlation analysis in the estimation of two-step FAVAR models to obtain more appropriate factors for forecasting. The canonical correlation technique identifies a small number of linear combinations of...

Based on a 6 equation model by Haldane and Battini (1999), we estimated a Phillips and an IS equations for Brazil after the Real Plan, in order to study the transmission mechanism of the monetary policy. The results show that interest rate affects output gap with a lag of one quarter and output...

The aim of the present research is to use a model economy built for Brazil, based on an optimizing dynamic general equilibrium model, in order to perform numerical simulations to derive the ability of the artificial economy to explain the impact of monetary policy interventions on short run...

This paper analyses the price-concentration relationship for the Brazilian banking industry. Interest rate on loans proxies for price and the Herfindahl-Hirschman index proxies for concentration. A positive price-concentration relationship may be associated with anti-competitive behaviour while...