The objective of this essay is to analyze the effects of the minimal nominal wage, a monetary aggregate and the exchange rate on the price level using the Johansen procedure for co-integration. The empirical evidence indicates the existence of a long term relationship among those variables and...

This paper evaluates the effectiveness of the minimum wage policy in various segments of Brazilian labor markets. The basic technique is to quantify corner solutions imposed by the minimum wage. These points are later used as a focalization mechanism in the simulation of upper bounds of the...

The effects associated with stabilization programmes, specially persistent inflation accompanied by prolonged periods of recession with unemployment, attract the attention on the evaluation of the consistency between the orthodox approach and the economic situation which characterizes the...

A contribution to the debate on the efficacy of monetary policy and some implications in the case of Brazil. The main opposition between Keynesian and Classic monetary theories is defined by the former’s proposition of money non-neutrality in the long period. According to Keynes, it is not...

The available estimations about the effect of minimum wage on poverty relies on partial equilibrium analysis. We estimate these effects in Brazil through a general equilibrium framework, dealing with lots of indirect effects of minimum wage. Using a computable general equilibrium model we...

In an international framework favourable to the performance of the Brazilian economy, the increase in the minimum wage and the formalization of labour contracts boosted GDP growth, increasing consumption growth with the incorporation of part of the low-income people to the market. The global...