TY - JOUR AU - Araujo, Elisangela Luzia AU - Araujo, Eliane Cristina de AU - Fonseca, Mateus Ramalho da AU - Silva, Pedro Perfeito da PY - 2020/04/28 Y2 - 2024/03/29 TI - Inflation Targets Regime and global financial cycle: An assessment for the Brazilian economy JF - PSL Quarterly Review JA - PSL QR VL - 73 IS - 292 SE - Articles DO - 10.13133/2037-3643_73.292_2 UR - https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/16422 SP - 27-49 AB - <div class="page" title="Page 1"><div class="layoutArea"><div class="column"><p><span>In light of the global financial cycle (GFC), this paper investigates the effectiveness of monetary policy in Brazil since the adoption of the inflation targeting regime. The theoretical section analyses monetary policy from the New Macroeconomic Consensus perspective, emphasizing the implications of the GFC. It also contrasts central bank theory with the post-Keynesian critique. For the empirical investigation, a Markov-switching vector autoregressive model is estimated from January 2000 to December 2017, combining the common variables from the empirical literature with the proxy for the GFC. The main results suggest that greater financial instability has a direct effect on domestic inflation</span><span>.</span></p></div></div></div><br /><div><em><span lang="EN-GB"><br /></span></em></div><div><p align="left"><strong>JEL codes</strong>:<em><span lang="EN-GB">C14, E12, E42</span></em></p></div> ER -