Inflationary goal schemes, Brazilian consumption, policy framewor
In June 1999, after a sharp devaluation of the real and the consequent abandonment of the pegged to the dollar exchange, Brazil formally adopted a monetary policy framework based on inflation targeting. In this work we try to emphasize to what extent and in what manner the inflation target regime (IT - Inflation Targeting) affects the Brazilian consumption. Therefore, we started with a characterization of the system, examine their theoretical assumptions, methodology and the environment needed to implement. We move to a discussion of the purpose of the transmission of interest on demand; and finally, the view of the above, we do a critical analysis for the Brazilian case.
The academic discussion of inflation targeting has intensified in the early 1990s, the adoption of the sequence scheme by many industrialized countries such as New Zealand, Canada, United Kingdom, Sweden, Finland, Australia and Spain.
[...] As in the last section we present the main conclusions. CONCLUSIONS Drivers of monetary policy in many countries have made use of the inflation targeting regime for believing in their ability to neutralize the inflationary expectations of economic agents without being subject to the problems present in other schemes. The main idea consists in the fact that an explicit inflation target is an anchor for inflationary expectations and increases confidence in the conduct of monetary policy in a superior manner to the adoption of a target for the exchange rate or monetary aggregates. [...]
[...] Central Bank Interventions in a stabilized economy: it is desirable to adopt inflation targeting in Brazil BNDES Essays, Essay April 1998. SICSÚ, J., control inflation Non-Monetary Policy: A Post Keynesian proposal. Rio de Janeiro, RJ: [s.n.], [ca.200]. 25p. SICSÚ, J., Theory and Evidence of the inflation targeting regime, Political Economy Journal, V No p.23-33, January-March 2002. SILVA, Marcelo E. A PORTUGAL, Marcelo S. [...]
[...] It is easily understood by the public and allows monetary policy to respond to shocks to the economy. Despite the advantages noted above, the targeting system has been receiving a lot of criticism. Empirical studies have shown inconclusive results regarding the adoption of inflation targeting regime when acceding countries are compared to those not adhering to the system. As highlighted Sicsú (2002), there are sufficiently strong arguments to ensure that the adoption of inflation targeting is responsible for the fall in inflation. [...]
[...] Efficient for the problem of structural deficit present in the Brazilian economy after the implementation of the Real Plan, which uses a large amount in securities debt to domestic financing, you pay a very expensive debt service and on top one has a atrofiação in area investments such as health, education and transport. Worsens of this, the fact that such a scheme in the international context, even countries that do not have the same Brazilian internal problems, has no empirical evidence whatsoever, due to observable ambiguous results. Thus, it is concluded that there is neither evidence nor theoretical ideal macroeconomic data for application of the system goals in the Brazilian case. REFERENCES AMARAL, R.Q. the. [...]
[...] The theory behind the regime of inflation targeting is no consensus among economists. The theory of Keynes and the Post Keynesians developments do not recommend the use of interest rates as a tool to keep track of inflation. Identify that inflation in most cases is a supply side of the problem and that the interest rate charged on the demand side. Post- Keynesian idea is that a rise in interest rates would attack the symptoms of inflation and not the causes. [...]
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