We estimate a VAR model of the Phillips curve with an exchange rate shock to the Brazilian economy. Several different ….p. over the annualized inflation); ii) a shock on the unemployment rate lasts for 18 months; iii) a shock on the expectations … are carried to the next month inflation (0.58 p.p. over the annualized inflation); and iv) a shock on the inflation rate …

We estimate the Phillips curve with an exchange rate shock to the Brazilian economy. Besides panel data, we estimate … Brazilian economy); and c) in the short-run both the unemployment rate and the exchange rate shock are not important …