This paper discusses recent experiences with inflation targeting (IT), the challenges that it faces since the global financial crisis, and ways to address them. The discussion is conducted from the perspective of upper middle-income countries (MICs). As background for the analysis, the second...

This study makes a contribution to the literature on bank opaqueness and bank credit through empirical evidence gathered from data of 310 NYSE and NASDAQ banks for the period 1Q1990 to 4Q2009. In addition to developing an opacity index based on bank risk information, the empirical analysis...

This paper aims at dissecting how stylized facts of labor supply and labor demand may explain the aggregate unemployment rate developments from 1992 to 2012 using a household level data (PNAD/IBGE) for Brazil as a whole and for its six main metropolitan regions. The conclusions follow. The main...

In response to growing competitive pressures and changes, a growing number of companies have established alliances as a way to complement their resources and ensure their competitive advantages. Although these alliances are a good strategic option for companies, there is evidence of a high rate...

This paper consists of an empirical investigation of Brazilian banks' profitability determinants. The panel data is composed of quarterly information for 71 banks between the first quarter of 2002 and the second quarter of 2012. Using data from the Brazilian banking system, we study the...

We present a methodology to construct a Broad Financial Stability Indicator (FSIB) based on unobserved common factors and a Specific Financial Stability Indicator (FSIS) for the Brazilian economy combining observed credit, debt and exchange rate markets indicators. Rather than advocate a...

Building Risk-Neutral Densities (RND) from options data can provide market-implied expectations about the future behavior of a financial variable. This paper uses the Liu et all (2007) approach to estimate the option-implied risk-neutral densities from the Brazilian Real/US Dollar exchange rate...

This study applies data envelopment analysis and stochastic frontier approach to a sample of Indian commercial banks to discuss the inconsistencies between these models. We find that DEA average efficiency scores are, in general, lower than those from the SFA model. However, both models indicate...

The 2007-2009 global financial crisis has highlighted the need for a review of the practices of banking supervision. The trend of the post-crisis is a macro-prudential regulation in order to smooth out economic cycles and mitigate systemic risk. Accordingly, Adrian & Brunnermeier (2011) propose...

We study the interaction between dispersed and sticky information by assuming that firms receive private noisy signals about the state in an otherwise standard model of price setting with sticky-information. We compute the unique equilibrium of the game induced by the firms' pricing decisions...