Carneiro, Dionisio Dias; Duarte, Pedro Garcia - Departamento de Economia, Pontifícia Universidade … - 2001
The fit of empirical Taylor Rules to Brazilian data improves if we consider the hypothesis of interest rate inertia. Inertia seems to be part of monetary policy of several countries and reflects the action of Central Banks of not adjusting once-for-all to changing conditions. This article...