Exchange Rate Pass-Through in Brazil /

In the last two years the real has undergone a large depreciation and the central bank has missed its inflation target in 2002 for the second year in a row. Inflation, however, has increased much less than the rate of currency depreciation and the pickup in inflation in the last quarter of 2002 rais...

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Autor principal: Belaisch, Agnes
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2003.
Col·lecció:IMF Working Papers; Working Paper ; No. 2003/141
Accés en línia:Full text available on IMF
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Sumari:In the last two years the real has undergone a large depreciation and the central bank has missed its inflation target in 2002 for the second year in a row. Inflation, however, has increased much less than the rate of currency depreciation and the pickup in inflation in the last quarter of 2002 raises the question of whether the exchange rate passthrough has finally risen. This paper argues that the passthrough in Brazil has fallen compared with estimates in other studies on earlier time periods, and remains low when compared with the passthrough in other Latin American countries. Indeed the passthrough is more comparable with that of G-7 countries-although in Brazil the effect on prices appears to be faster.
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Descripció física:1 online resource (19 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students