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 …

adoption of the inflation targeting regime in Brazil. The BCB`s reaction function has some features that corroborate the thesis … floor; and b) is inattentive to the state of the economy (the inflation and output gaps), and expresses an excessive …

reasoning, inflation target monetary policy regimes are criticized, in particular the one adopted in post-1999 balance of …

increasing transparency in the conduction of the monetary policy. After the adoption of inflation targeting in Brazil there was …