This study aims to estimate the system of bank credit demand and supply in Brazil. Understanding how the balance is established in this market is the key to know the importance of the credit channel. Based on the aggregated data from June 2000 to August 2012 not only for firms but also for...

This note presents some considerations about the difficulty to understand the transmission mechanism of monetary policy. This difficulty becomes even more accentuated in cases of economies experiencing a change in an environment from high to low rates of inflation. In this paper the Brazilian...

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...