Based on market expectations reported by the Central Bank of Brazil for the SELIC interest rate, the IPCA inflation … work analyzes the term structures of disagreement in expectations regarding the future values of these variables. It also … investigates the driving factors of disagreement, paying special attention to the influence of monetary authorities' credibility …

presented under rational expectations and full credibility. In contrast, we assume agents use econometric models to form … inflation expectations, capturing limited credibility. We compare the dynamics after a shock to external-borrowing costs … a model with imperfectly anchored expectations. The inflation-targeting consensus indicates that interest-rate rules are …