The debate on the strategy of banking spread reduction in Brazil has been extended for a long time and was fundamentally concentrated in macroeconomics aspects. This paper has the goal of evaluate the new policy of banking spread reduction implemented by the federal government, which has added...

We construct a dynamic general equilibrium model, calibrated to the Brazilian economy, in which a fraction of the firms set prices one quarter in advance. The artificial economy simulations generate series consistent with real data and with a typical estimation of a structural...