Trade openness and nonlinearities in Brazilian monetary policy

This paper investigates the existence of asymmetries in monetary policy in Brazil, considering distinct levels of trade openness. To this end, monthly information between 2003 and 2020 and a non-linear Taylor rule with threshold effect and endogenous regressors were used. The results show that in th...

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Detalles Bibliográficos
Autores: Gurgel, Lucas Chaves, Arruda, Elano Ferreira, Ferreira, Roberto Tatiwa
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2023
País:Brasil
Institución:Universidade de São Paulo (USP)
Repositorio:Economia Aplicada
Idioma:portugués
OAI Identifier:oai:revistas.usp.br:article/188704
Acceso en línea:https://revistas.usp.br/ecoa/article/view/188704
Access Level:acceso abierto
Palabra clave:política monetária
taxa de juros
regra de Taylor
abertura comercial
monetary policy
interest rate
Taylor's rule
trade openness
Descripción
Sumario:This paper investigates the existence of asymmetries in monetary policy in Brazil, considering distinct levels of trade openness. To this end, monthly information between 2003 and 2020 and a non-linear Taylor rule with threshold effect and endogenous regressors were used. The results show that in the higher trade openness regime, the response to deviations of inflation expectations from its target is statistically null. In addition, there is a smoothing process in the conduct of Brazilian monetary policy and a response to the output gap in both regimes, with greater response in the lower openness trade regime.