Ferreira, Roberto Tatiwa; Castelar, Ivan - In: Economia 9 (2008) 1, pp. 47-62
What is called a price puzzle is a positive and persistent response of ination to a unit shock in the interest rate's innovation. Using a VAR to analyse monetary policy in Brazil, this paper comes to the conclusion that when nonlinearities in the data were considered, most of this e_ect...