The inflation target regime has been criticized in Brazil since its adoption in 1999. However, in its eighth year, we believe that its benefits are bigger than its problems.Particularly, the criticism made to it during the first years, even being right in some cases under the initial...

In June 2006 the National Monetary Council is going to define the inflation targetto 2008. That is why it is important to try to preview what the inflation behaviorcould be in 2006 and 2007. The results suggest that it will not be easy to accomplishstrictly the inflation target (4.5%) in 2007...