Purpose – The purpose of this paper is to analyze the influence of macroeconomic variables and economic policies on expectations and confidence of entrepreneurs. It provides an econometric analysis of the expectation transmission channel under inflation targeting in Brazil, emphasizing the...

After more than two decades of inflation targeting in the world, it is important to evaluate if the adoption of this regime in a relevant developing country contributed to the creation of a better environment for the process of entrepreneurs' expectations formation. Brazil is part of an...

If from one hand credibility is important for the conduct of monetary policy, on the other hand, greater credibility may eventually stimulate the creation of bubbles in the credit market and asset prices through the risk-taking channel, and as a consequence, bring to reality the “paradox of...