Too tight and too loose: Monetary policy in Brazil in the last decade by Carlos Eduardo Gonçalves (9/2015). “In this paper, I analyze monetary policy in Brazil following the country’s adoption of Inflation Target in 1999. Some important facts emerge. First, teasing out the neutral interest rate from a small-scale model, I show that in some periods the CB rate deviated from the estimated neutral rate in the wrong direction…”
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