## Monetary Policy and Inflation Expectations: High-Frequency Evidence from Brazil

_IMF Working Papers, February 28, 2025_

## Source details

**Canonical URL:** [Monetary Policy and Inflation Expectations: High-Frequency Evidence from Brazil](https://www.imf.org/en/publications/wp/issues/2025/02/28/monetary-policy-and-inflation-expectations-high-frequency-evidence-from-brazil-562685)

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## Bibliographic details
- Authors: Carlos Goncalves, Mauro Rodrigues, Fernando Genta
- Published: February 28, 2025
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229003391.001

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### Summary and Main Findings
- Authors: Carlos Goncalves, Mauro Rodrigues, Fernando Genta
- Publication date: February 28, 2025
- Core finding: Positive changes in interest rates cause inflation expectations to decline.
- Core finding: Positive changes in interest rates cause the exchange rate to appreciate.
- Contribution: To the best of the authors' knowledge, this is the first paper to study how monetary policy affects inflation expectations in an emerging economy using high frequency identification techniques.

### Data and Identification Strategy
- Frequency and sample: daily data.
- Identification method: Rigobon’s identification via heteroskedasticity.
- Empirical approach referenced in keywords: OLS regression, high-frequency evidence, monetary policy shock, monetary policy meeting.

### Subjects and Keywords
- Subject: Exchange rates, Foreign exchange, Inflation, Prices.
- Keywords: Asia and Pacific, Brazil, case study OLS regression, Exchange rates, high-frequency evidence, Inflation, inflation expectation, inflation expectations, Monetary policy, monetary policy meeting, monetary policy shock.

### Research Note
- Working paper disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

*Source: IMF Working Papers landing page for "Monetary Policy and Inflation Expectations: High-Frequency Evidence from Brazil".*

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_Source: https://www.imf.org/en/publications/wp/issues/2025/02/28/monetary-policy-and-inflation-expectations-high-frequency-evidence-from-brazil-562685_