The purpose of this paper is to evaluate the performance of the Central Bank of Brazil's Small-Scale Structural Model (SSSM) as a supporting tool for the monetary policy decision process. The SSSM's CPI inflation projections accuracy for 1 to 3 quarters ahead was evaluated comparatively to those...

One of the most challenging elements of the inflation-targeting framework is the exchange rate forecast. Wadhwani (1999) proposed a UIP, where real variables like the unemployment differential, the current account differential, and the excess return of financial assets affect the expected...