What Drives Inflation Expectations in Brazil? : An Empirical Analysis /

This study examines the macroeconomic determinants of survey inflation expectations in Brazil since the adoption of inflation targeting in 1999. The results suggest that the inflation targeting framework has helped anchor expectations, with the dispersion of inflation expectations declining consider...

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Hlavní autor: Cerisola, Martin
Další autoři: Gelos, R.
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2005.
Edice:IMF Working Papers; Working Paper ; No. 2005/109
On-line přístup:Full text available on IMF
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Shrnutí:This study examines the macroeconomic determinants of survey inflation expectations in Brazil since the adoption of inflation targeting in 1999. The results suggest that the inflation targeting framework has helped anchor expectations, with the dispersion of inflation expectations declining considerably, particularly during periods of high uncertainty. We also find that apart from the inflation target, the stance of fiscal policy, as proxied by the ratio of the consolidated primary surplus to GDP, has been instrumental in shaping expectations. The importance of past inflation in determining expectations appears to be relatively low, and the overall empirical evidence does not suggest the presence of substantial inertia in the inflation process.
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Fyzický popis:1 online resource (22 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students