Serrano, Franklin - In: Brazilian journal of political economy 30 (2010) 1, pp. 63-72
Interest rate, exchange rate and the system of inflation target in Brazil. In the consensus view of the Brazilian … system of inflation targeting, the core of inflation is due to demand shocks; the rate of interest is set to control demand … core inflation comes from cost push; the interest rate affects the exchange rate; changes in the exchange rate affect costs …
