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The present work evaluates disaggregated inflation responses to monetary policy shocks during the period 2003 to 2020. Autoregressive Vector Models with time-varying parameter vector autoregressive Models (TVP-VAR) are estimated and impulse response functions are used to assess the price behavior disaggregated to Selic shocks in different periods. To verify possible changes in the conduction of monetary policy in the period, a Taylor rule was also estimated for the studied period subject to structural breaks. The results of the structural break test by Bai and Perron (2003) found empirical evidence of a break in 2006m08, which may be associated with a change in the conduct of monetary policy by the Central Bank. This date, together with the dates when the presidents of the Central Bank took office, was used in the analysis of the impulse response functions of the TVP-VAR to compare the effects of monetary policy shocks in different periods. The results, based on the estimated impulse response functions, demonstrate similar responses of monetary policy shocks on disaggregated prices in different periods. [ABSTRACT FROM AUTHOR]

The behavior of families' financial situation has been arousing great interest from society and policymakers. On society in terms of its effects on the well-being of families. Of policymakers in terms of impacts on the management of financial stability. The article sought to present empirical evidence on the behavior of indebtedness of Brazilian families in the face of changes in credit conditions and monetary policy in the period from March 2005 to February 2020. The present work fills a gap in the Brazilian finance literature by studying the determinants of the financial situation of Brazilian families. In particular, the work associates monetary policy and household indebtedness originally. In the study, time series were used. The econometric techniques used for the estimations were the ordinary least squares method, generalized methods of moments (GMM), and the system equations via System-GMM. The results suggest that monetary policy and credit interest rates have a mixed impact on household debt. An increase in interest rates reduces the debt stock. However, it increases the commitment of household income. This result suggests a distinct dynamic between the stock and flow of household debt, which is the most significant contribution of work. Results and contributions: The results suggest that monetary policy and credit interest rates have a mixed impact on household debt. An increase in interest rates reduces the debt stock. However, it increases the commitment of household income. This result suggests a distinct dynamic between the stock and flow of household debt, which is the most significant contribution of work. [ABSTRACT FROM AUTHOR]

We test the hypothesis that public banks reduce monetary policy power for Brazilian economy, during the 2000-2018 period. Previous studies have shown that companies with access to government driven credit present smaller fall in investment and production after a contractionary monetary policy shock. Nevertheless, these studies are based on microeconomic data and ignore cost-push effects of monetary policy. We employ state dependent local projections (Jordà, 2005) to compare monetary policy power (defined as the sensibility of inflation to changes in basic interest rate) between periods of high credit of public banks and periods of high credit of private banks. We do not find evidence that monetary policy is less powerful in periods of high credit of public banks. Even though periods of high credit of public banks present a lower effect over output, those periods present less persistent price puzzles than periods of high private credit. We conduct several robustness tests to confirm our results. We attribute those results to lower flexibility in interest rates of credit from public banks, what leads to lower transmission in financial costs, lower reduction in capital stock and lower puzzle in exchange rate. [ABSTRACT FROM AUTHOR]

Purpose: To analyze the impact of the subprime crisis on the performance of the largest Brazilian banks, using accounting indicators that allow measuring the behavior of default rates, the evolution of expenses with the Bad Debit Provision (BDP), the volume of total assets and the rates of profitability. Methodology: Information from the five largest banks established in Brazil (Banco do Brasil, Caixa Econômica Federal, Itaú Unibanco, Bradesco and Santander), in the period between 2008 and 2016, was collected and analyzed. Data were obtained through consultations on the BCB website and on the banks' websites. The results obtained were summarized in graphs and tables. Results: The performance of banks was affected by the increase in the volume of BDP expenses in the period, as a result of a conservative strategy adopted by the institutions. An increase in the volume of defaults was identified, but banks were cautious keeping BDP levels at volumes compatible with the growth in credit concessions. All banks showed an increase in the value of their total assets. In terms of profitability, the institutions had different performances. The significant amounts of profits earned by Banco Bradesco and Itaú Unibanco in 2015 are noteworthy. Contributions of the study: The implementation of an expansionist monetary policy positively influenced the performance of banks, especially in institutions with state control. The research shows that the subprime crisis affected the performance of banks, as a consequence of the conservative actions adopted, in order to protect the National Financial System. The research contributes to the literature, firstly, by presenting empirical data on the effects of the subprime crisis on the main Brazilian banking institutions, and also by discussing the results in light of the theory and economic situation of the period, allowing different interpretations of the impact of this phenomenon. [ABSTRACT FROM AUTHOR]

This paper aims to recall Keynes's ideas on money. In this sense, the paper dedicates itself only to recall Keynes's thoughts on this elements money, putting aside several debates on the topic Keynes undertook with a number of other authors. The paper's contributions rests in offering, in a rather short length a debate previously done only in book length documents; moreover, this synthesis will be done in Portuguese, something not yet undertaken. Although this contribution might be seen as a very humble one, we argument it is not the case, as to apprehend the course of Keynes's ideas, it will be analyzed his main economic works, namely the 1923 Tract on Monetary Reform, 1930 Treatise on Money, and 1936 The General Theory of Employment, Interest and Money, which is not a small effort per se. The background to the discussion will be Keynes' departure from neoclassical theory throughout these works. Furthermore, the article briefly debates how Keynes has apprehended the institutional remarks of the Monetary Authority. [ABSTRACT FROM AUTHOR]

This article aims to rescue the debate occurred in economics about the coordination between monetary and fiscal policies and their consequences in terms of policy applications. For this, a review of recent literature that permeates the subject has been prepared. [ABSTRACT FROM AUTHOR]

The Phillips Curve, defined as an inversely proportional relationship between wages and the unemployment rate, emerges in 1958 from a study proposed by New Zealand economist, eradicated in England, AW Phillips and since then it is one of the most important relationships analyzed by macroeconomics. This statement is corroborated by studies carried out by most central banks, especially those that adopted the inflation targeting regime, which seek to understand the inflationary dynamics of their nation. Given the above, this research aims to analyze the scientific production on the Phillips Curve in Brazil in the last ten years. To this end, a bibliographic review was used, using the descriptors "Phillips Curve in Brazil" and its respective English synonym, "Phillips Curve in Brazil". The articles were searched in the database database of the Scientific Eletronic Library Online (SCIELO), and the collection was carried out between April and June 2020. Articles published between June 2010 and June 2020, in Portuguese, were defined as inclusion criteria and English, whose object of study revolves around the Brazilian inflationary dynamics and its respective Phillips Curve. Articles found in duplicate and / or outside the scope period were excluded from the analysis. Twenty-four articles published in Scielo with the descriptors "Phillips curve in Brazil" and their English synonym were found and after using the inclusion and exclusion criteria, eleven articles were selected for analysis. At the end of the evaluation of the articles, it is possible to conclude that there is still a disagreement in the national literature on the best econometric methodology to be applied to illustrate the inflationary dynamics from the Phillips Curve, as well as on the proxies to be used to represent, mainly, the marginal cost of companies. It is also possible to observe that all the research carried out used national data, something extremely common in the literature when it comes to the evaluation of the Phillips Curve. However, regarding the development of regional monetary and fiscal policies, whether expansionist or contractionary, it is necessary to develop models with local data, to represent the real inflationary dynamics of the region. [ABSTRACT FROM AUTHOR]

Based on an analysis of the structure of incentives inherent to the architecture of the European Stability Mechanism (esm), the paper defends the esm's inability to prevent, mitigate, and resolve financial crises. The paper presents the main features of the esm, and illustrates how its governance architecture results from a model and a practice of European integration in which the pooling of sovereign powers goes along with the member states' attempt to maintain control over the use of those powers. In the case of monetary integration, such a model produces dysfunctional results in that it impedes efficient control of systemic risks. The paper puts forward a number of suggestion as to how a restructuring of the esm's institutional architecture could enable it to perform the role it has been designed for. The paper also shows what ought to change in the relation between national and supranational sovereignty for this to happen. [ABSTRACT FROM AUTHOR]

The article informs about Portugal and European governance reforms for economic sovereignty, and informs about governance reform path was initiated European economic system, which introduced, in 2011, a reduction in the national decision-making space with regard to budgetary performance. Topics include financial assistance program, and with consistent parts of the economic union reforms monetary policy; and political option, which aimed to limit the deficit by constitutional rule.

This paper aims to verify the existence of the bank lending channel in the Brazilian economy, that is, if monetary policy movements affect the lending behavior of the banks and if there are asymmetric effects among the banks. For large banks, it has been found that funding increases in response to a contractionary monetary policy. For the higher liquidity accounts, the results point to a reduction in the growth rate of these accounts for small and medium-sized banks. In addition, a contractionary monetary policy does not affect small and medium-sized banks' credit operations, while it has positive effects on large banks' credit operations. From the evidences found, it was not possible to confirm the existence of the lending channel for the Brazilian economy. [ABSTRACT FROM AUTHOR]

Changing the value of money was used, from the first moment of the Restoration, as a means of financing war and monarchy. Absent in the Philippine period, when there was stability in the Portuguese monetary standard, the mutationist practice was seen as unwanted, dangerous, and immoral. Nevertheless, the needs of the time led the monarchy to delegate its monetary policy to the Conselho da Fazenda (Treasury Council), where thinking about the currency was not only adequate to the needs of power games, but also adjusted to the new ideas, especially those originating from the so-called Salamanca School. Studying the first mutating initiatives (1640-42) allows us to understand how monetary practices evolved in Portugal to a policy of adjustment and resurgence of the national monetary system. [ABSTRACT FROM AUTHOR]

This article investigates the relationship between monetary policy shocks and the Brazilian stock market. We use a structural model based on Bjornland and Leitemo (2009) where we identify monetary shocks with a combination of restrictions on short and long term, which retains the properties preconized by the economic theory. The results indicate that IBrX falls 0.5% immediately after an unexpected monetary policy shock that increases the Selic rate by 100 basis points. On the other side, we found that a shock that increases IBrX by 1% leads to an increase in Selic of 75 basis points. This results show that: (i) economy agents adjust their portfolios from equities to fixed income after restrictive monetary shocks; (ii) stock market returns are one of the parameters that determines the monetary policy decisions in Brazil. [ABSTRACT FROM AUTHOR]

Studies related to the meanings of money have shown empirically its multidimensional character. Despite the social relevance of the subject there has been only few publications related to it. Thus in this article we descried the main findings and the meanings of money in different aspects: conceptual, theoretical (levels of analysis) and methodological (operational). We use data from publications from 2000-2014 found in indexed databases. From these we have identified three levels of analysis (intraindividual, interindividual-social and ideological), predominance of the use of structured questionnaires and participants with a university background as well as an emphasis to identify the meanings attributed to money. We discussed the need for more integrative explanatory models that consider the various contexts from which such meanings emerge, as well as the development of research that addresses the applicability of the results. [ABSTRACT FROM AUTHOR]

This study aims to estimate a Taylor rule for the Brazilian economy in the period of 2004- 2014 and verify that there was disruption in the operation of monetary policy after the exchange of the Central Bank of presidents took place between 2010 and 2011. The results were statistically significant and indicated that an increase of 1% over the deviations of inflation expectations in relation to your goal, and the actual output relative to its equilibrium level, causes the central bank to raise interest rates by 0.1094% and 0, 0806%, respectively. Moreover, the Chow test indicated that there was a structural break in the model at the first meeting after Alexandre Tombini assume the presidency of the Central Bank. [ABSTRACT FROM AUTHOR]

This paper analyzes the effects of the end of Quantitative Easing of the United States of America over the Brazilian economics, emphasizing on the interest rate, exchange rate and inflation. For this purpose, the static and dynamic econometric models will be used to evaluate the relationship between the interest rate in USA and the macroeconomic variables in Brazil, specified in the research. Despite the limitation of the covered period by the econometric estimates, it is possible to observe that the Federal Reserve System announcement about the reduction of the monetary stimulus promoted a process of repricing of currencies and titles with indirect effects on the Brazilian inflation during the analyzed period. [ABSTRACT FROM AUTHOR]

Interest rate and monetary transmition mechanisms in Brazil. This paper develops the hypothesis that the Brazilian interest rate is high as a result of partially obstructed monetary transmission mechanisms. Transmission failures arise due to the following characteristics of the Brazilian economy: (i) segmentation of the credit market; (ii) low penetration of free credit within the income determination process; (iii) truncated term structure of interest rates; (iv) participation of LFTs in public debt; (v) participation of administered prices in the consumer price index. To achieve this result, the paper explores the BMW model and provides some preliminary evidence.Interest rate and monetary transmition mechanisms in Brazil. This paper develops the hypothesis that the Brazilian interest rate is high as a result of partially obstructed monetary transmission mechanisms. Transmission failures arise due to the following characteristics of the Brazilian economy: (i) segmentation of the credit market; (ii) low penetration of free credit within the income determination process; (iii) truncated term structure of interest rates; (iv) participation of LFTs in public debt; (v) participation of administered prices in the consumer price index. To achieve this result, the paper explores the BMW model and provides some preliminary evidence. [ABSTRACT FROM AUTHOR]

Brazil implemented the inflation targeting regime (ITR) in 1999, following the end of the exchange rate anchor of the Real Plan. On the other hand, the management of the ITR by the Central Bank of Brazil -- in part to be due to a long history of high inflation -- remains inspired by the vision of the "new consensus on macroeconomics" prior to the recent crisis, which has often led to a very high interest rate policy, with negative impacts on economic growth. This essay focuses on analyzing the meaning of New Macroeconomic Consensus and its implications in terms of governance of macroeconomic policy, particularly with regard to the inflation targeting regime. [ABSTRACT FROM AUTHOR]

This article assesses the monetary policy rules of which defines inflation targeting regimes, especially its relation to the Philips short run curve, through the contributions of behavioral economics. The article is developed upon the use of the Phillips curve by monetary authorities in deriving the monetary policy rules of which is not taken into the account of important behavioral aspects as related to the perspective of the impacts of unemployment and inflation on subjective well-being. This omission may generate important implications which are relevant to the implementation of monetary policy by central bank, potentially causing levels of well-being to be inferior to the ones observed if information and social preferences regarding inflation and unemployment were considered. A simple theoretical model is developed to structure the problem and to serve as a reference point to broader public policy issues in association with the goal of reducing both inflation and unemployment. [ABSTRACT FROM AUTHOR]

Revelations of the crisis: fiat currency and the Treasury-Central Bank relations. The current crisis shed a new light on issues that, previously, were not perceived as serious or important. It highlighted the close ties between fiat currency and government bonds denominated in it or, in other words, the relationship between Treasury and Central Bank. Two ill-conceived views of the "new consensus" on money that had turned into taboos were put in evidence. The first, derived from the quantitative theory, concerns the rejection of unsterilized monetary expansion; the second, directly related to the neoliberal ideology, prohibits or imposes strict limits on the role of central banks in the financing of public debts. [ABSTRACT FROM AUTHOR]

The United States has relied heavily on reserve accumulation by foreign central banks to finance its current account deficit since 2000 on. However, the currency composition of reserves has changed gradually over the past decade and the share of U.S. dollar holdings has steadied. This fact may imply that the U.S. will need to start its adjustment process very soon. [ABSTRACT FROM AUTHOR]

The article identifies and analyzes the performance of three phases of the management of macroeconomic policy during the first two years of Dilma Rousseff's administration (2011 and 2012). The first, comprising the first semester of 2011, is characterized by a restrictive monetary and fiscal policy, in the intent of producing economic downturn and controlling a inflation. The second period was largely conditioned by the eurozone crisis. The third, comprising the second semester of 2012, was characterized by the deepening of the economic downturn. [ABSTRACT FROM AUTHOR]

Para analisar empiricamente o impacto das mudanças inesperadas da SELIC no mercado acionário brasileiro entre janeiro de 2003 e maio de 2012, construímos uma medida de surpresa da SELIC, baseada em consenso de mercado. Nossa amostra de eventos é composta de 88 reuniões do COPOM. Em 32 desses eventos ou reuniões, foram observadas mudanças não esperadas. Nossos resultados mostram que para cada 1% de aumento não esperado na SELIC, o índice de mercado, IBOVESPA decresce 3,28%. [ABSTRACT FROM AUTHOR]

The aim of this paper is to assess the occurrence of commodities price overshooting with respect to its long-run equilibrium. According to the literature, the high flexibility in commodity prices makes shocks-which will be eventually captured by general prices-to be absorbed primarily by commodity prices, leading to the effect of overshooting, similar to the model of Dornbusch (1976) for the foreign exchange market. More specifically, to the paper evaluates the possibility of using the Commodities Prices Index (CPI) to forecast the Consumer Price Index (IPCA) and as an instrument of intermediate monetary policy target. The results confirm the hypothesis that commodity prices overshoot their long-run equilibrium and the adequacy of using CPI deviations to forecast future behavior of the IPCA. Therefore, monitoring commodity prices can support policy makers' decisions to reduce inflation variability. On the other hand, using CPI as an intermediate target is not feasible.. [ABSTRACT FROM AUTHOR]

A number of evidence suggests a renewing of national states' interest in acting upon their economies. In Brazil, three new industrial policies were implemented starting in 2003, in addition to the regulatory policies introduced in the 1990s. This poses a challenge of institutional design: how to establish regulatory apparatuses which are economically responsive and densely institutionalized? Understanding the successes of monetary policy might help the elaboration of other economic policies, such as industrial policies. The result of this learning process might translate into credibility and legitimacy gains. [ABSTRACT FROM AUTHOR]

This work aimed to analyze the effects of economic policy (notably the monetary) at the global level on social policies, whose mechanism of transmission was via taxation. Methodologically, it was essentially a search, bibliographic in configuring an exploratory study with explanatory traces. Finally, it was found that the monetary economic policies reflect the formulation of social policies in place, internalized repercussion was expressed in the tax context, allowing evidence, so preliminary, the study found. [ABSTRACT FROM AUTHOR]

Against the backdrop of advances and setbacks have emerged, especially over the last two decades of the twentieth century, economic facts that outlined and were used as the direction of contemporary international economy. These facts, which are responsible for monetary, financial and foreign exchange crises which eventually reveal a common process underlying economic and financial instability of the peripheral countries, so-called emerging. It is in this scenario of economic instability and mistrust that Brazil effectively inserts itself economically in the international context, this option, which eventually transform the national productive scenario, and in particular the State of Paraná, which eventually generates a process of internal development, based especially on the results of competitiveness, this factor, is responsible for growth, induction and economic structuring of the State. So, the object of this research study, claim to investigate the impacts arising from economic development model in Paraná, in front of the international insertion process of the Brazilian economy. With regard to the methodological aspects, the tooling used was in the analytical method. Featuring a bibliographic study. [ABSTRACT FROM AUTHOR]

Income-transfer policies in Brazil and Argentina. This article deals with the con-ditioned income-transfer developed by the governments of Lula and Dilma, in the Brazilian case, and by Cristina Fernández de Kirchner, in Argentina. In other words, the programs Bolsa Família and "Asignación Universal por Hijo para Protección Social". They are comparatively analyzed with regard to their institutionality, the access criteria, the conditionings and the concept of poverty, in order to discuss whether they constitute or not a social right and the relative importance of the amount given. [ABSTRACT FROM AUTHOR]

Developmentalism and new-developmentalism. This paper starts from the con-ceptualism of New Developmentalism which was proposed by its formulators and their criticism of the "old" developmentalism in order to compare both. It is elabo-rate in both theoretical and historical leveis. In the former, it explores the theoretical streams that contributed to the formulation of economic policies that designated the Latin American developmentaHsm. In the latter, it focuses on the economic policy of the Brazilian import-substitution industrialization and advocates the impropriety of associating it to the irresponsibility in the management of the foreign exchange, fiscal and monetary policies, as the proposers of New Developmentalism assert. Finally, in a third stage, it resumes the propositions of the New Developmentalism and debates the pertinence of some of its policy propositions based upon theoretical considerations and the Brazilian experience which were mentioned in the previous stages. [ABSTRACT FROM AUTHOR]

Real exchange rate and external constraint. This paper investigates a topic of the agenda about growth models, emphasizing the elaboration of an external constrained model with endogenous elasticity, with an emphasis on real exchange rate level as main tool for the economic development. The model is anchored in Kaldor, Thirlwall and Barbosa Filho's models and it will demonstrate that external constraint changes in the course of time. [ABSTRACT FROM AUTHOR]

the purpose of this study is to analyze the cause of mortality of small companies in Brazil, based on situations economics before and after real plan on 1994, on period between 1995 at 2005, using econometrics resources that aid to identify multiplier and competition characteristics of market, the interrelations between companies births and deaths, and the contrary, to show the diagnoses before and after real implantation. In truth, this study consists on the measure and compare the direction of theses influences, by the corresponding sign of the marginal coefficient, the compatibles graphics demonstrations, considering the real implantation, with the aim, also, of let available to policy makers, of the micro and macro segments, forms of analyze alike situations. [ABSTRACT FROM AUTHOR]

The paper, after an introduction of biographical nature, presents the main points of controversy between keynesians and Friedman in the post World War II. It covers the differences relating to the consumption function, and therefore the power to stabilize aggregate demand through fiscal policies. It also shows the distances between monetarists and keynesians regarding the nature of the inflationary process and the effectiveness of monetary policy. Finally, the conclusions are aligned. [ABSTRACT FROM AUTHOR]

This paper aims to identify and describe the new-classics, which area considered to be the creators of the inflation targeting model and to criticize its adoption in Brazil through a post keynesian augmentation. The analysis will be specific for the Brazilian Model starting at its implementation on 1999, with more focus on President Fernando Henrique Cardoso's government. The matters of independency versus autonomy of the Country's central Bank, a theoretical discussion regarding the execution of the monetary policy and its relationship with the success of the proposed plan and an overview of the post keynesian scholars and its ideas regarding monetary policies will be discussed as it follows [ABSTRACT FROM AUTHOR]

Fifteen years of monetary rigidity in Brazil after the Real Plan: a research agenda. The paper makes a review of literature and a research agenda on the anomaly of Brazilian monetary policy. Following a retrospect of the first 15 years after the Real Plan, there is a review of studies aiming to explain the high real interest rate. None of the summarized theses can completely explain the phenomenon. The main research opportunities are: deepening of empirical evidence of monetary policy efficacy loss; improvement in mensuration of its inefficacy; and improvement of alternative instruments to control inflation. The field of political economy is also fertile. One should assess the relevance of oligopolies as an explaining factor of persistence of high inflation. [ABSTRACT FROM AUTHOR]

This paper's goal was to investigate the effect different forms of price presentation have on Brazilian customers' evaluations regarding the following variables: purchase intentions, word-of-mouth communications, trust in advertising, perceived value, and perception of expensive prices. We use the literature suggested by Smith and Nagle (2005a, b) and Krishna, Briesch, Lehmann, and Yuan (2002), in which they suggested that perceived value of price explains customer judgments. Findings from Study 1 indicated that when price is presented in the form of R$ 2,299.00 at the competitors, R$ 1,599.00 here (versus the control group with the traditional price), the retailer had better results in terms of customer purchase intentions. This finding was achieved for products with both high involvement and high monetary value: i.e., values over $ 1,500.00. Outcomes from Study 2, which was based on a low involvement product, a hair dryer, on a specific date in the retail calendar, Mother's Day, showed that the price presented as only this weekend significantly increased customer purchase intentions. Study 3 supported that a 5% discount (vs. regular price vs. 10% vs. 15%) resulted in greater positive impact on buying intention. The paper contributes to price theory by supporting the assumption that price presentation positively influences buying intention, confirming the arguments of Nagle, Hogan and Zale (2011), Urbany, Bearden and Weilbaker (1988) and rejecting the studies by Blech (1981), Golden (1979), and Goodwin and Etgar (1980). [ABSTRACT FROM AUTHOR]

Inflation targeting, Taylor rule and money neutrality: a post-Keynesian critic. This paper critically discusses the inflation targeting regime proposed by orthodox economists, in particular the Taylor Rule. The article describes how the Taylor Rule assumes the argument of money neutrality inherited from the Quantitative Theory of Money. It discusses critically the ways of operation of the rule, and the negative impacts of the interest rate over the potential output. In this sense, the article shows the possible vicious circles of the monetary policy when money is not neutral, as is the case for post-keynesian economists. The relation of interest rates, potential output and the output gap is illustrated in some estimates using the methodology of Vector Auto-Regressive in the Brazilian case. [ABSTRACT FROM AUTHOR]

This article evaluates the effects that monetary policy actions exert on Brazilian stock market. By the measures defined to estimate the surprise caused by Comitê de Política Monetária do Banco Central do Brasil (COPOM) decisions, it was verified that to a hypothetic unexpected 1% increase in the target rate is associated an 1.3% average fall of Bovespa Index. Additional tests did not show distinct reactions caused by direction decisions, neither evidences from relevant recent economic events or decision contexts having influences on the surprise responses. [ABSTRACT FROM AUTHOR]

This paper aims at evaluating the conduction of monetary policy after the adoption of inflation targeting. Formation of Selic rate is modeled by estimating a reaction function of the BCB. Results show an excessive degree of interest rate smoothing and a high level of equilibrium interest rate. This evidence supports the belief that Selic rate's formation is ruled by a conservative behavior. The conservative conduction of monetary policy is related to two distinct features of BCB's reaction function: i) the great weight of autoregressive components; and, chiefly, ii) a very high level of the equilibrium interest rate. The main conclusion is that, all remaining unchanged, the interest rate would hardly be reduced in a satisfactory way. Massive and chronic deflation would be needed if Selic were to reach a reasonable level, closer to that of rates in the rest of the world. This evidences the need for a debate on the adequacy of current stabilization strategy. [ABSTRACT FROM AUTHOR]

Monetary and financial cooperation: what is good to Asian is also good to Latin America?. This article compares the Asian and Latin American experiences with monetary cooperation. It is argued that in the latter such cooperation has hardly progressed, due to low degree of regional integration, the recurrent use of multilateral institutional resources to deal with external shocks and the lack of clear objectives: monetary cooperation is some times seen as a means to foster integration, but also as a means to provide long term funds and as a source of liquidity in foreign currencies. In Asia, differently, cooperation has apparently not been so instrumental to regional integration, but has proven to be quite important as a means to build a regional capital market as well as a mechanism to deal with external shocks. [ABSTRACT FROM AUTHOR]

Este ensaio estuda políticas monetárias discricionárias otimizadas como extensão do novo modelo básico Keynesiano, o qual incorpora tributação da receita de juros, focando no efeito das mudanças na alíquota da receita de juros sobre volatilidade macroeconômica. Simulações mostram que altos níveis de tributação aumentam a volatilidade da inflação, do gap de produção, e a expectativas incondicionais da função de perda do banco central. [ABSTRACT FROM AUTHOR]

Marx has a method for the evaluation of patterns of interaction between finance and innovation. Two starting points of this method are the simultaneity of cause and effect and the identification of reciprocal effects between the monetary-financial dimension and the industrial-innovative dimension. This paper investigates this method firstly defining a dynamic concept of money. The connections between the monetary-financial dimension and the industrial-innovative dimension are examined through their historical and theoretical elements. Finally, the most important connections of this complex interaction are presented. [ABSTRACT FROM AUTHOR]

In times of crisis fund Euro area, caused mainly pela articulated lack of fiscal policies and monetary policies consonant with regional -- especially by PIIGS (Portugal, Ireland, Italy, Greece and Spain) -- is interesting to reflect on positive points in the process of European integration. One of the greatest merits of the advance of integration is the decentralization of policy decisions related to Regional Development, responsible for the improvement of socio-spatial conditions of countries like Spain, Portugal and Greece. [ABSTRACT FROM AUTHOR]

Este artigo analisa o gerenciamento da dívida pública no Brasil considerando os principais modelos teóricos recentes. Ademais, examina o possível efeito sobre a taxa de juros básica devido à estratégia adotada pelo Tesouro Nacional a partir de 1999. Os resultados indicam que a estratégia adotada pelo Brasil para a gestão da dívida pública foi baseada nas recomendações de Calvo e Guidotti (1990). Também foi observado que o prazo médio da dívida pública, a parcela de títulos indexados ao indicador do Sistema Especial de Liquidação e Custódia (SELIC) e a razão dívida pública/produto interno bruto, têm um papel significativo na determinação da taxa de juros básica. É importante notar que os esforços do governo para aumentar o prazo da dívida pública e atenuar efeitos perniciosos sobre a taxa de juros não devem ser desprezados. [ABSTRACT FROM AUTHOR]

Central Bank transparency: an analysis of the Brazilian case. Nowadays there is a tendency among central banks of increasing transparency in the conduction of the monetary policy. After the adoption of inflation targeting in Brazil there was an increase in the communication of the Central Bank of Brazil with the public. This paper makes a brief review of the recent theoretical and empirical literature concerning this subject. Furthermore, an analysis due to the transparency in the conduction of Brazilian monetary policy on important macroeconomic variables is made. The findings denote that an increase in transparency improves the behavior of several macroeconomic variables. [ABSTRACT FROM AUTHOR]

Interest rate, exchange rate and the system of inflation target in Brazil. In the consensus view of the Brazilian system of inflation targeting, the core of inflation is due to demand shocks; the rate of interest is set to control demand; and some variation in the exchange rate happens as "collateral damage". In this note we argue that in reality core inflation comes from cost push; the interest rate affects the exchange rate; changes in the exchange rate affect costs and prices; it is the effect of interest rates on demand that is the "collateral damage" and that the long run anchor of the system is low average real wage rigidity. [ABSTRACT FROM AUTHOR]

This paper aims at replying critical commentaries made by Leite, F. P., Aggio, G. O. e Angeli, E. (this Review, 2009) on two Author's theses. The first one states that, if public deficit is to be financed, then either interest rate applied is negative or government invests as if it where a profit-making business enterprise. Otherwise, public debt will mathematically follow an explosive trend. The second one says that if there is no debt and public deficit is paid with money issuing, then the monetary stock will tend to an equilibrium level. [ABSTRACT FROM AUTHOR]

The paper aims at analyzing the article by Gerson Lima on the manner by which fiscal deficit should be covered. It presents a more general dynamic model, where the principle of effective demand is explicitly used. By doing that, it is possible to treat as endogenous variables the national income and the government entries, what brings the result that the public debt must not follow an explosive path unless the very restrictive conditions of Lima's paper prevail. It also evaluates Lima's implicit inflation theory, and argues against his approximation to Friedman's framework. [ABSTRACT FROM AUTHOR]

Inflation targets, monetary policy and investment. In this paper two hypotheses about the relationship between monetary policy and investment in the context of the inflation target system were tested. One of these hypotheses is based on the idea of neutrality of money, and the other hypothesis is based on the reject of that idea. An investment equation for seventeen economies using a piece-wise dummy variable was estimated by the Methodology of Panel Data. The results highlight that a negative correlation between current expectation of restrictive monetary policy and current investment rose after the inflation target system implementation. [ABSTRACT FROM AUTHOR]

The goal of this paper is to analyze the premiere effects of the New Brazilian Bankruptcy Law, measuring its impact over the amount of bankruptcies and judicial reorganizations, and the firms' access to credit. Making use of econometric models we find that the amount of bankruptcies (requested and decreed) suffered a strong and immediate impact, reducing it in a significant way as well as the requirement of judicial reorganizations. Finally, using sectorial aggregated credit data, we find an expansion of the credit market, mainly to commercial, rural and services sectors. Additionally we did not evidence changes at the average interest rate charged to firms. [ABSTRACT FROM AUTHOR]

Inflation targets: lessons from the Greenspan era. This paper approaches the experience of monetary policy in the Greenspan period and suggests what lessons could be learnt. The adoption of inflation targeting would denote a step backward in the policymaking process in the USA, for, since the 1980s, a distinctive feature is flexibility of response to adjust to unexpected events and changing environments. The Fed was able to exercise an informed judgement in critical situations and this opens the case for the importance of not restraining policymakers' actions through the adoption of tight rules. Furthermore, that the various experiences with inflation targeting are indisputably huge successes, and that this framework represents the state of the art (therefore nothing else can alternatively be done), remains to be seen. [ABSTRACT FROM AUTHOR]

Budget deficit and national savings: theoretical approach. A consensus has not yet emerged about the relationship between budget deficit, external deficit and national saving. According to mainstream economic literature the budget deficit can cause an insufficiency of national saving for a given investment rate. In this case, the investment rate will not be reduced if foreign saving is absorbed, causing an external deficit. In general, the mechanisms through which budget deficits could cause current account deficits are not highlighted in the works about this theme. We arrive at the conclusion that there is not a systematic relationship between budget deficit, current account deficit and national saving and that when it happens it can be processed only through changes in the real exchange rate. [ABSTRACT FROM AUTHOR]