Ferrari Filho, F., & Milan, M. (2018). Excess Real Interest Rates and the Inflation Targeting Regime in Brazil: Monetary Policy Ineffectiveness and Rentiers’ Interests. Applied Economics and Finance, 5, 84-100.
https://doi.org/10.11114/aef.v5i6.3710

has been cited by the following article:

• TITLE: The Relationship between Productivity and Inflation: An Empirical Analysis of the Brazilian Economy

  AUTHORS: Denise Piper, Fernando Ferrari-Filho, Marcos Tadeu Lélis

  KEYWORDS: Economic Development, Inflation Targeting Regime, Non-Monetary Controls, Productivity

  JOURNAL NAME: Theoretical Economics Letters, Vol.10 No.3, June 9, 2020

  ABSTRACT: The article presents an empirical test of the hypothesis that productivity expansions are the answer to the inflation problems experienced by the Brazilian economy. The study obtained evidence from the estimation of a Structural Autoregressive Vector (SVAR) model for the period after December 2009, which confirmed the existence of an inverse relationship between inflation and productivity in Brazil’s manufacturing industry. However, this relationship is inelastic; that is, Brazilian entrepreneurs tend to convert productivity gains into mark-up instead of passing them on to prices. Thus, productivity increases yield smaller inflation control effects than expected.