Vol. 22 No. 3 (2002)
Jul-Sep / 2002
Published July 1, 2002
How to Cite
Giambiagi, Fabio, and José Carlos Carvalho. 2002. “Inflation Targeting: Proposals for a Permanent Regime”. Brazilian Journal of Political Economy 22 (3):408-28. https://doi.org/10.1590/0101-31572002-1265.
Inflation Targeting: Proposals for a Permanent Regime
Abstract
In 1999 the inflation targeting regime was introduced in Brazil in an environment plenty of uncertainties and relatively high inflation rates. As a consequence, the set of rules that to this day govern the Brazilian regime still lack a strong institutional support. This paper makes some proposals for a permanent inflation targeting regime. In doing so, we discuss how can a greater institutional commitment be achieved with the inflation targeting setup. We also discuss issues on what the permanent inflation target level should be and also how much deviation from the target should be tolerated. Based on these issues, we suggest a set of rules to be adopted in Brazil.
JEL Classification: E52; E58.
Keywords: Monetary policy inflation inflation targets