International interest rate comovements and monetary policy in Bazil

International interest rate comovements and monetary policy in Bazil

Blog Article

This article shows that international spillovers or coordination in central bank interest rate setting are significant components of the Brazilian Taylor rule.For this, the short-term interest rate comovements of 28 countries and Euribor were Beauty estimated through a dynamic factor model.A nonlinear reaction function for the Central Bank of Brazil that Dummies includes global and regional factors evidenced that monetary policy in Brazil is influenced by the policy of other broad groups of countries and not just the United States and the Eurozone.