Time-Varying Neutral Interest Rate-The Case of Brazil /

Emerging markets have experienced a sizeable decline in their neutral real interest rates until recently. In this paper we try to identify the main factors that contributed to it, with a focus on Brazil. We estimate an interval for Brazil's time-varying neutral rate based on a range of structur...

Täydet tiedot

Bibliografiset tiedot
Päätekijä: Perrelli, Roberto
Muut tekijät: Roache, Shaun
Aineistotyyppi: Aikakauslehti
Kieli:English
Julkaistu: Washington, D.C. : International Monetary Fund, 2014.
Sarja:IMF Working Papers; Working Paper ; No. 2014/084
Linkit:Full text available on IMF
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100 1 |a Perrelli, Roberto. 
245 1 0 |a Time-Varying Neutral Interest Rate-The Case of Brazil /  |c Roberto Perrelli, Shaun Roache. 
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300 |a 1 online resource (32 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a Emerging markets have experienced a sizeable decline in their neutral real interest rates until recently. In this paper we try to identify the main factors that contributed to it, with a focus on Brazil. We estimate an interval for Brazil's time-varying neutral rate based on a range of structural and econometric models. We assess the implications of incorrectly estimating a time-varying neutral rate using a small structural model with a simple monetary policy instrument rule. We find that policy prescriptions are very different when facing uncertainty of neutral rate and of output gap. Our result contrasts sharply with Orphanides (2002), suggesting that the best response to neutral rate uncertainty is to ensure policy remains highly sensitive to inflation and output variations. 
538 |a Mode of access: Internet 
700 1 |a Roache, Shaun. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2014/084 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2014/084/001.2014.issue-084-en.xml  |z IMF e-Library