| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 7356286 | Journal of Applied Economics | 2011 | 12 Pages |
Abstract
The goal of this paper is to provide a better understanding of monetary policy effectiveness in the case of indexed bonds. When public debt management deals with bonds indexed to the interest rate set by the monetary policy, there is no wealth effect and, as a consequence, monetary policy has a weak transmission channel reducing its effectiveness. This can help to explain why monetary policy in Brazil has been so tight and interest rates so high during the Real Plan.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Joaquim Pinto De Andrade, Manoel Carlos De Castro Pires,