.p. over the annualized inflation); ii) a shock on the unemployment rate lasts for 18 months; iii) a shock on the expectations … has no effect over the unemployment rate. That is, more inflation does not reduce unemployment. …

unemployment on inflation seems to present in short term. In the long run, the estimations do not able to detect any impact of … unemployment on the dynamic of inflation. Finally, the structural break marks the relationship between the exchange rate and … ; unemployment ; exchange rate shock ; GMM-HAC method …

Brazilian economy); and c) in the short-run both the unemployment rate and the exchange rate shock are not important …