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 deals with the role of the public debt on the transmission mechanism of monetary policy. An IS function where the Ricardian Equivalence does not prevail and Phillips curve are estimated by full information maximum likelihood (FIML), General Method of Moments (GMM) and bootstrap...