Browsing FGV EPGE - Ensaios Econômicos by Title "What happens after the central bank of Brazil increases the target interbank rate by 1%?"

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What happens after the central bank of Brazil increases the target interbank rate by 1%?

Cysne, Rubens Penha
2005-03-15

I start presenting an explicit solution to Taylorís (2001) model, in order to illustrate the link between the target interest rate and the overnight interest rate prevailing in the economy. Next, I use Vector Auto Regressions ...