Nonlinearities in Central Bank of Brazil's reaction function: the case of asymmetric preferences
This paper investigates the existence of possible asymmetries in the Central Bank of Brazil's objectives. By assuming that the loss function is asymmetric with regard to positive and negative deviations of the output gap and of the inflation rate from its target, we estimated a nonlinear reacti...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universidade de São Paulo
2010-06-01
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| Series: | Estudos Econômicos |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-41612010000200005 |