Câmbio flexível e metas de inflação em países selecionados da América Latina: análise de vetores auto-regressivos (VAR)

Flexible exchange rate and inflation target in selected Latin American economies: a vector autoregressive analysis (VAR)

Authors: Ana Carla Baduy Pinto

Flávio Vilela Vieira
Keywords:: Inflação, Câmbio
Abstract: The main goal of this work is to analyze Latin American experiences with flexible exchange rate and inflation targets in order to understand the behavior of the exchange rate and inflation in a model with monetary characteristics. The VAR estimation uses the impulse-response function (IRF) and the variance decomposition analysis (VDA) for the exchange rate and inflation. It suggests for the exchange rate dynamics that: inflation and interest rates have some relevance in explaining exchange rate changes for Brazil and Chile, but for all countries the relative participation of these variables is small in explaining exchange rate movements. Inflation dynamics explanation for Brazil and Chile is directly associated to changes in the exchange rate and the Mexican inflation seems to be explained by specific elements of monetary policy such as the interest rate and the monetary base.
Downloads: PDF (Portuguese)
Issue: Vol. 29 No. 1 (2008)
Section: Artigos
License: A remessa dos artigos à revista implica a cessão dos direitos autorais à FEE.