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This paper investigates the interaction between fiscal and monetary authorities in Brazil in order to measure the degree of fiscal dominance in the Brazilian economy. To do that, a dynamic stochastic general equilibrium model is used. The model was developed for an economy with sticky prices and inflationary trend, whose parameters of interest are estimated by Bayesian inference. It is concluded that the degree of fiscal dominance in the Brazilian economy is low vis-à-vis the U.S. and Canadian economies. This result has a direct impact on the conduct of policies targeted at reducing inflation, and this probably means having to bring inflation targets down, which would directly influence the agents’ expectation about future inflation.