The fit of empirical Taylor Rules to Brazilian data improves if we consider the hypothesis of interest rate inertia. Inertia seems to be part of monetary policy of several countries and reflects the action of Central Banks of not adjusting once-for-all to changing conditions. This article...

This paper explores two changes in traditional models that measure the exchange rate pass-through in Brazil. The first change is a non-linear specification to the pass-through coefficient, making it depend on other variables that reflect economic conditions. The second change is to consider...