The role of interest rates in the Brazilian business cycles

Detalhes bibliográficos
Autor(a) principal: Souza-Sobrinho,Nelson F.
Data de Publicação: 2011
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402011000300006
Resumo: This paper offers additional insights on the relationship between interest rates and business cycles in Brazil. First, I document that Brazilian interest rates are very volatile, counter-cyclical and positively correlated with net exports, as observed in other emerging market economies. Next, I present a dynamic stochastic general equilibrium model in which firms face working capital constraints and labor supply is independent of consumption. This parsimonious model, appropriately calibrated to the Brazilian economy, predicts that interest rate shocks can explain about one third of output fluctuations and delivers business cycle regularities consistent with the Brazilian data.
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spelling The role of interest rates in the Brazilian business cyclesInterest RatesBusiness CyclesCountry RiskThis paper offers additional insights on the relationship between interest rates and business cycles in Brazil. First, I document that Brazilian interest rates are very volatile, counter-cyclical and positively correlated with net exports, as observed in other emerging market economies. Next, I present a dynamic stochastic general equilibrium model in which firms face working capital constraints and labor supply is independent of consumption. This parsimonious model, appropriately calibrated to the Brazilian economy, predicts that interest rate shocks can explain about one third of output fluctuations and delivers business cycle regularities consistent with the Brazilian data.Fundação Getúlio Vargas2011-09-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402011000300006Revista Brasileira de Economia v.65 n.3 2011reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGV10.1590/S0034-71402011000300006info:eu-repo/semantics/openAccessSouza-Sobrinho,Nelson F.eng2011-10-13T00:00:00Zoai:scielo:S0034-71402011000300006Revistahttp://bibliotecadigital.fgv.br/ojs/index.php/rbe/issue/archivehttps://old.scielo.br/oai/scielo-oai.php||rbe@fgv.br1806-91340034-7140opendoar:2011-10-13T00:00Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)false
dc.title.none.fl_str_mv The role of interest rates in the Brazilian business cycles
title The role of interest rates in the Brazilian business cycles
spellingShingle The role of interest rates in the Brazilian business cycles
Souza-Sobrinho,Nelson F.
Interest Rates
Business Cycles
Country Risk
title_short The role of interest rates in the Brazilian business cycles
title_full The role of interest rates in the Brazilian business cycles
title_fullStr The role of interest rates in the Brazilian business cycles
title_full_unstemmed The role of interest rates in the Brazilian business cycles
title_sort The role of interest rates in the Brazilian business cycles
author Souza-Sobrinho,Nelson F.
author_facet Souza-Sobrinho,Nelson F.
author_role author
dc.contributor.author.fl_str_mv Souza-Sobrinho,Nelson F.
dc.subject.por.fl_str_mv Interest Rates
Business Cycles
Country Risk
topic Interest Rates
Business Cycles
Country Risk
description This paper offers additional insights on the relationship between interest rates and business cycles in Brazil. First, I document that Brazilian interest rates are very volatile, counter-cyclical and positively correlated with net exports, as observed in other emerging market economies. Next, I present a dynamic stochastic general equilibrium model in which firms face working capital constraints and labor supply is independent of consumption. This parsimonious model, appropriately calibrated to the Brazilian economy, predicts that interest rate shocks can explain about one third of output fluctuations and delivers business cycle regularities consistent with the Brazilian data.
publishDate 2011
dc.date.none.fl_str_mv 2011-09-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402011000300006
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402011000300006
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/S0034-71402011000300006
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Fundação Getúlio Vargas
publisher.none.fl_str_mv Fundação Getúlio Vargas
dc.source.none.fl_str_mv Revista Brasileira de Economia v.65 n.3 2011
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
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