Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/91326
Authors: 
Schettini, Bernardo Patta
Gouvea, Raphael Rocha
Sachsida, Adolfo
Year of Publication: 
2012
Series/Report no.: 
Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1694
Abstract (Translated): 
We estimate a VAR model of the Phillips curve with an exchange rate shock to the Brazilian economy. Several different specifications, with different time frequencies, were estimated. Overall the results were robust to these changes, and can be summed up in the following: i) the pass-through to the next month inflation is around 0.04 percentage points (p.p.) (0.48 p.p. over the annualized inflation); ii) a shock on the unemployment rate lasts for 18 months; iii) a shock on the expectations are carried to the next month inflation (0.58 p.p. over the annualized inflation); and iv) a shock on the inflation rate has no effect over the unemployment rate. That is, more inflation does not reduce unemployment.
JEL: 
E31
E24
C32
Document Type: 
Working Paper

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