Central Bank performance in a stable economy: is it desirable to adopt inflation targets in Brazil?

This article deals with the possible adoption of explicit inflation targets by monetaryauthorities in Brazil, following the example of the experiences of New Zealand, Canada,the United Kingdom, Sweden, Finland, Australia and Spain. Inflation targets wouldwork, first, as a coordination device for tho...

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Detalhes bibliográficos
Autores: Rigolon, Francisco, Giambiagi, Fabio
Formato: artículo
Estado:Versión publicada
Fecha de publicación:1999
País:Brasil
Recursos:EDITORA 34
Repositorio:Revista de Economia Política
Idioma:portugués
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/1061
Acesso em linha:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1061
Access Level:acceso abierto
Palavra-chave:Metas inflacionárias
estabilização
banco central
política monetária
Inflation targets
stabilization
central bank
monetary policy
Descrição
Resumo:This article deals with the possible adoption of explicit inflation targets by monetaryauthorities in Brazil, following the example of the experiences of New Zealand, Canada,the United Kingdom, Sweden, Finland, Australia and Spain. Inflation targets wouldwork, first, as a coordination device for those involved in the price and wage setting process,and second, as a transparent aim of the monetary policy, whose performance would beevaluated by the adherence of inflation to the targets. The paper shows the motivationsthat explain the adoption of the regime, discusses its theoretical fundamentals, and analyzesthe problems and trade-offs related to its implementation in practice. Finally, based on thetheory and the international experience, some arguments in favour of the adoption of theregime of inflation targets in Brazil are developed. JEL Classification: E52; E58; E43.