The article examines how monetary policy affects inflation and the economy in Brazil from 1975 to 2000. By analyzing different time periods, the researchers found that monetary policy shocks impact output significantly. While inflation didn't decrease much in the past, it seems to have more influence on prices after the Real Plan. The interest rate reacts strongly to financial crises in recent years, leading to a decrease in money supply. Overall, inflation persistence has decreased in the most recent period.