This paper analyses the effects of two alternative monetary strategies (exchange rate targeting and inflation targeting) on economic growth and employment. On the panel of 18 countries for the period from 1996 to 2013, I tested the hypothesis that countries in exchange rate targeting have a...

By the Kalman filter and a Vector Autoregressive (VAR) analysis for the recent Brazilian economy, this work aims at assessing empirical evidences on relationships between expected inflation, observed inflation and the Central Bank's credibility. It is found that an inflation positive shock...