IDEAS home Printed from https://ideas.repec.org/a/ekm/repojs/v43y2023i3p686-705id2424.html
   My bibliography  Save this article

Do political commentaries command? The case of the Central Bank of Brazil

Author

Listed:
  • Gokhan Sahin Gunes
  • Dila Asfuroglu

Abstract

This paper investigates whether political pressure affects the conduct ofmonetary policy in Brazil. For the period between January 2010 and August 2020, weestimate a modified Taylor rule to empirically test whether the calls for lower interest ratesby presidents induce Central Bank of Brazil (BCB) to lower the policy rate. We documentthat BCB is more likely to set the policy rate in line with the preferences of political leaders.We also show that the response of BCB to political pressure remained significant even thoughpolitical pressure diminished in recent years. JEL Classification: E42; E43; E52; E58.

Suggested Citation

  • Gokhan Sahin Gunes & Dila Asfuroglu, 2023. "Do political commentaries command? The case of the Central Bank of Brazil," Brazilian Journal of Political Economy, Center of Political Economy, vol. 43(3), pages 686-705.
    • Handle: RePEc:ekm:repojs:v:43:y:2023:i:3:p:686-705:id:2424
    as

    Download full text from publisher

    File URL: https://centrodeeconomiapolitica.org/repojs/index.php/journal/article/view/2424/2357
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Central bank independence; political pressure; Taylor rule; emerging economy;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekm:repojs:v:43:y:2023:i:3:p:686-705:id:2424. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Brazilian Journal of Political Economy (Brazil) (email available below). General contact details of provider: https://centrodeeconomiapolitica.org/repojs/index.php/journal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.