Garcia, Márcio Gomes Pinto; Didier, Tatiana - Departamento de Economia, Pontifícia Universidade … - 2000
We review the arguments in the finance and open macroeconomics literature relevant for the Central Bank to set the level of the interest rate in an open economy. The two relevant risks are the currency and country risks. The country risk (Brazil Risk) is measured with different financials...