Brazil's Monetary Policy Shifts Focus to Growth Over Inflation, Simulation Shows.
The article presents a model that shows how Brazil's monetary policy, inflation, and GDP growth are connected from 2004 to 2011. The model suggests that monetary policy in Brazil has been more influenced by economic growth than by controlling inflation during this time. The researchers also predict potential outcomes of a new monetary policy strategy starting in August 2011, which aims to avoid recessions. The model has been successful in predicting past trends and could be useful for other countries with inflation targeting policies.