Brazilian monetary policy during Dilma's government (2011-2016)

An essay of rupture and the restoration of conservatism

Authors

  • Norberto Montani Martins Doutorando do Programa de Pós-Graduação em Economia do Instituto de Economia da Universidade Federal do Rio de Janeiro Bolsista do CNPq

Abstract

Since the 1990s, monetary policy in Brazil is characterized by its conservatism. In some few and short periods, the Central Bank of Brazil showed more flexibility. This paper analyzes one of those moments, focusing on the period from 2011 to 2016. It aims at analyzing, from the viewpoint of political economy, how Brazilian monetary policy responded to the pressures from different economic players. We argue that, after a pretended rupture from 2011 to 2013, a convention on monetary policy's conservatism was restored. This was a result from the rentier behavior of non-financial firms and the inaction of Brazilian government in implementing changes to the inflation targeting framework.

Published

2022-04-05

Issue

Vol. 31 No. 1 (2022): Economia e Sociedade

Section

Articles

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