The exchange rate pass-through to regional inflations of Brazil in inflation targeting

Authors

  • Douglas Marcos Ferreira Universidade Federal de Viçosa
  • Marcelo José Braga Universidade Federal de Viçosa

DOI:

https://doi.org/10.13037/gr.vol31n92.2238

Abstract

This study aimed to analyze the behavior of exchange rate pass-through mechanisms for regional inflation over inflation targeting in Brazil. Two flexibilities regarding traditional pass-through coefficient models were used for this. First, we departed from analysis at regional levels to assess which areas were the most sensitive to currency devaluations. After, the general index of each regional inflation was broken in each of the groups that composes it to assess the behavior of pass-through mechanism under a regional disaggregated perspective. The obtained empirical evidence suggests an asymmetric behavior between regions and between the groups that compose the regional indexes.

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Author Biographies

Douglas Marcos Ferreira, Universidade Federal de Viçosa

Doutorando em Economia Aplicada - Departamento de Economia Rural - UFV

Marcelo José Braga, Universidade Federal de Viçosa

Professor Associado do Departamento de Economia Rural - UFV

Published

2015-05-21

How to Cite

Ferreira, D. M., & Braga, M. J. (2015). The exchange rate pass-through to regional inflations of Brazil in inflation targeting. Gestão & Regionalidade, 31(92). https://doi.org/10.13037/gr.vol31n92.2238