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presidential election campaign in Brazil. Moreover, the Brazilian monetary policy exhibits nonlinear patterns that better captures …
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Brazil arising from this policymaker's uncertainties about the effects of the output gap on inflation. Theoretically, we … about the slope in the Phillips curve implied nonlinearities in the Central Bank of Brazil's reaction function; (ii) we … gap in Meirelles-Tombini's administration; and (iv) the Central Bank of Brazil has also reacted to the exchange rate in …
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The recent macroeconomic literature stresses the importance of managing heterogeneous expectations in the formulation of monetary policy. We use a stylized macro model of Howitt (1992) to investigate inflation dynamics under alternative interest rate rules when agents have heterogeneous...
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