Monetary policy and regional impacts

empirical evidence from the Brazilian states

Authors

  • Caio César de Azevedo Universidade Federal de Minas Gerais
  • Fernanda Faria Silva Universidade Federal de Ouro Preto
  • Ivair Ramos Silva Universidade Federal de Ouro Preto

DOI:

https://doi.org/10.1590/yc0qda05

Abstract

ABSTRACT

This paper investigates the heterogeneous regional effects of monetary policy in Brazilian states from 2004 to 2018, including three new variables, as well as an alternative empirical technique to identify the regional effects. In general, regarding positive and negative effects, the Northeast and North region were the most affected ones; the credit was confirmed as the most active regional transmission mechanism, followed by interest and exchange rates; finally, connected to that, the article draws attention to the importance of economic policy coordination, especially in terms of monetary and fiscal policy to reduce inequalities and economic heterogeneities in peripheral states.

 

Published

2025-09-17

Issue

Vol. 34 No. 3 (2025): Economia e Sociedade

Section

Articles

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