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Phillips curves with different expectation formation processes for Brazil and the USA. Other than the standard rational … separate inclusion of a labor market in the model helps to anchor inflation even in a situation of adaptive expectations, a … positive output gap and inflation above target. The estimation results show that the adaptive learning model does a better job …
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line with what the consensus in this literature states for the case of Brazil. …
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This paper investigates the transmission channel of macroprudential instruments in a closed economy DSGE model with a rich set of financial frictions. Banks' decisions on risky retail loan concessions are based on borrowers' capacity to settle their debt with labor income. We also introduce...
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