The scope of this paper is to test the hypothesis of the non-neutrality of money in Brazil since 1980, and try to argue that if the Brazilian Central Bank carries on neglecting the fact that money/inflation can actually be non-neutral in the long-term, monetary policy may well hinder the...

It is considered inapt for central banks to adjust reserve money (quantity of money) and interest rate (price of money) at the same time. Thus, necessitates the need for a choice instrument. Enough evidence abounds in microeconomic theory on the undesirability of manipulating both price and...