Brazil: An Empirical Study on Fiscal Policy Transmission

An evaluation of the tolerant to higher inflation rate in the short run by the Brazilian Central Bank in the period 2001-2012

“…We highlight here a number of studies that estimate rules à la Taylor. These are ANDRADE and DIVINO (2001), MENDONÇA (2001), FIGUEIREDO and FERREIRA (2002), MINELLA et al (2002), FAVERO and GIAVAZZI (2002), MINELLA et al (2003), SALGADO et al (2005), MENDONÇA (2007), MOREIRA et al (2007), MODENESI (2011) andMOREIRA (2011). ROMER and ROMER (2002) make an interesting study on the implementation of U.S. monetary policy to the various mandates of the presidents of the FED based on the evaluation of the minutes of the Monetary Policy Committee (FOMC).…”