This paper analyzes inflation targeting, focusing on the interest-price transmission mechanism. The authors discuss the recent performance of the retail industry in Brazil, highlighting how monetary policy affects prices, both directly and indirectly. The key hypothesis is that interest rates...

This paper investigates the relationship between interest rate and volatility of real effective exchange rate in Brazil. Through a simultaneous multivariate GARCH model, which allows estimating equations for the mean and variance in a single stage, it was observed that: it’s not possible to...