Towards credibility from inflation targeting: the Brazilian experience
This article analyses the use of the basic interest rate after the adoption of inflation targeting in Brazil and the credibility of this monetary regime through two indices that consider the Cukierman and Meltzer (1986) definition for credibility. It also shows the main theoretical and practical motives for changes in the conduction of the monetary policy in the 1970s; the way that inflation targeting strategy is inserted in rules vs. discretion analysis; and the main points that characterize the literature concerning inflation targeting. The findings denote that the strategy implemented in Brazil is not a good mechanism to develop credibility.
Volume (Year): 39 (2007)
Issue (Month): 20 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Helder Ferreira de Mendonça & Manoel Carlos de Castro Pires, 2010. "Gradualism in monetary policy and fiscal equilibrium," Journal of Economic Studies, Emerald Group Publishing, vol. 37(3), pages 327-342, September.
- Helder Ferreira de Mendonca & Rubens Teixeira da Silva, 2009. "Fiscal effect from inflation targeting: the Brazilian experience," Applied Economics, Taylor & Francis Journals, vol. 41(7), pages 885-897.
- Philip Arestis & Fernando Ferrari-Filho & Luiz Fernando de Paula, 2011.
"Inflation targeting in Brazil,"
International Review of Applied Economics,
Taylor & Francis Journals, vol. 25(2), pages 127-148.
- Montes, Gabriel Caldas & Tiberto, Bruno Pires, 2012. "Macroeconomic environment, country risk and stock market performance: Evidence for Brazil," Economic Modelling, Elsevier, vol. 29(5), pages 1666-1678.
- de Mendonça, Helder Ferreira & de Guimarães e Souza, Gustavo José, 2009. "Inflation targeting credibility and reputation: The consequences for the interest rate," Economic Modelling, Elsevier, vol. 26(6), pages 1228-1238, November.
- Helder Ferreira de Mendonça, 2009. "Output-inflation and unemployment-inflation trade-offs under inflation targeting: Evidence from Brazil," Journal of Economic Studies, Emerald Group Publishing, vol. 36(1), pages 66-82, January.
- Helder Ferreira de MendonÃ§a & Jos� Simao Filho, 2008. "Macroeconomic Effects of Central Bank Transparency: The Case of Brazil," Cato Journal, Cato Journal, Cato Institute, vol. 28(1), pages 117-137, Winter.
- Montes, Gabriel Caldas, 2013. "Credibility and monetary transmission channels under inflation targeting: An econometric analysis from a developing country," Economic Modelling, Elsevier, vol. 30(C), pages 670-684.
- Helder Mendonça & Renato Villela Loures, 2009. "Market discipline in the Brazilian banking industry: an analysis for the subordinated debt holders," Journal of Regulatory Economics, Springer, vol. 36(3), pages 286-307, December.
- de Mendonça, Helder Ferreira & de Guimarães e Souza, Gustavo José, 2012. "Is inflation targeting a good remedy to control inflation?," Journal of Development Economics, Elsevier, vol. 98(2), pages 178-191.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2599-2615. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.