METAS INFLACIONÁRIAS, PREÇOS LIVRES E ADMINISTRADOS NO BRASIL: UMA ANÁLISE ECONOMÉTRICA

The aim of this paper is to analyze the performance of inflation targeting in Brazil and the role of prices controlled by the government and prices freely defined by the supply/demand system. We argue that the Brazilian inflation targeting regime has had some drawbacks, related to the determination of the right index price, from the beginning of its implementation which, as a result, has had some negative influence on the economy as a whole. Our results show that controlled prices have a considerable impact in the inflation and, consequently, in the inflation targeting system. Our results also show that the attempt to control inflation from the demand side, through the Taylor Rule, has a negative impact in the economic growth Therefore, the system calls for some analysis in order to be suitable to the Brazilian scenario.