Monetary policy through credit control: An analysis of the inflation target period
DOI:
https://doi.org/10.4013/pe.2013.91.05Abstract
The article discusses the effectiveness of the use of the interest rate to control inflation as compared with the use of the credit volume. Since Brazil’s aggregate demand has as its main component the consumption of families, it makes sense to ask whether the interest rate is better to control consumption than the direct control of the credit volume available to consumers. To examine this question, a VAR model was used for the period of the policy of inflation targets. The mains results are that Brazil’s inflation does not seem to be one of demand and that a monetary policy based on the interest rate is more effective than credit to explain the behavior of consumers.
Key words: monetary policy, credit, inflation, VAR.
Downloads
Published
Issue
Section
License
I grant the journal Perspectiva Econômica the first publication of my article, licensed under Creative Commons Attribution license (which allows sharing of work, recognition of authorship and initial publication in this journal).
I confirm that my article is not being submitted to another publication and has not been published in its entirely on another journal. I take full responsibility for its originality and I will also claim responsibility for charges from claims by third parties concerning the authorship of the article.
I also agree that the manuscript will be submitted according to the journal’s publication rules described above.
