Government-driven credit had an important role in countervailing private credit crunch in Brazil during the recent financial crisis. However, government credit concessions continued to expand after the economy recovered. This paper investigates some important features of this expansion using a...

If the central bank attempts to minimize a welfare loss function in a small-open economy model with nominal wage and price rigidities, it has been argued that a monetary policy rule that responds to consumer price index (CPI) inflation performs better than rules that react to competing inflation...

This paper addresses the issue of how individual bank interconnectivity and the interbank network topology impact on Brazilian banking efficiency between 2007 and 2013. We use several network measures to analyze the effects of bank interconnections on cost, profit and risk-taking efficiency. The...

This paper simulates the effects of credit risk, changes in capital requirements and price shocks on the Brazilian banking system. We perform the analysis within the context of a model that integrates data on bilateral exposures in the interbank market with information about the liquidity...

Business and financial cycles are important to Monetary and Macroprudential Policies. The Countercyclical Capital Buffer (CCB) proposed by the Basel Committee on Banking Supervision (BCBS) assumes that the financial cycle is four times longer than the business one with direct impacts over its...

We re-evaluate the proposed framework of the Basel Committee on Banking Supervision (BCBS) to look into the credit-to-GDP gap as a leading indicator related to the Countercyclical Capital Buffer (CCB) and propose an alternative approach focusing at credit-to-GDP growth. We follow earlier work...

The herd behavior in financial markets is particularly associated with periods of intense volatility and can be explained by the human component in asset trades. In this work, we use the methods of Christie and Huang (1995) and price pressure with high frequency data to detect the herd behavior...

This paper aims at investigating the structural relation between patterns of services consumption and income. We focus on how patterns of services consumption adjust to different levels of income by using the perspective of social expansion as a narrative approach for the Brazilian case in the...

This article for the first time uses Brazilian trade data to draw conclusions about the invoice currency choice—both in general and as it pertains to the Brazilian real (BRL). We find that the Brazil-Argentina policy of providing payment orders associated to an exchange transaction between...

In the aftermath of the 2007-2008 global financial crisis, a series of measures has been proposed to regulate the OTC derivatives market. The motivation is to increase the disclosure of the OTC operations aiming to decrease the probability of crisis. The main objective of this paper is to...