Title:	Optimal monetary rules in a context of fiscal disequilibrium: evidence from Brazil (1996:I to 2007:I).
Authors:	ALMEIDA, C. L. de SOUZA, G. da S. e MOREIRA, T. B. S.
Affiliation:	CHARLES LIMA DE ALMEIDA, Tribunal de Contas da União; GERALDO DA SILVA E SOUZA, SGE; TITO BELCHIOR S. MOREIRA, Universidade Católica de Brasília.
Date Issued:	2007
Citation:	Economia e Desenvolvimento, Recife, v. 7, n. 1. p. 123-137, 2007.
Description:	This paper aims to derive an optimal monetary policy rule in a context of fiscal disequilibrium. We analyze the transmission channels of the fiscal and monetary policies through estimation of a Philips curve and the fiscal IS curve. The results indicate that the fiscal deficit is statistically significant and affects the inflation rate indirectly via output gap. Furthermore, the results also suggest a perverse effect of the interest rate on the exchange rate and on inflation. In this context, we found empirical evidence that the Brazilian economy shows a non-Ricardian regime for the period 1996: I to 2007: I.
Keywords:	Optimal monetary rule Fiscal desequilibrium Fiscal dominance regime
Type of Material:	Artigo de periódico
Access:	openAccess
Appears in Collections:	Artigo em periódico indexado / Embrapa Unidades Centrais (AI-SEDE)