This paper analyzes inflation targeting, focusing on the interest-price transmission mechanism. The authors discuss the … component of the prices formed in the Brazilian retail industry. The big risk of inflation targeting, on the one side, is to … increase deflation and, on the other, to create stagflation - unemployment and inflation. (Rev Econ Polit/DÜI) …

and interest rate (Selic and Selic discounted the inflation calculated by IPCA) are independent. Under the regime of … inflation targeting, this account suggests that the high exchange rate volatility in Brazil may be related to the monetary …