Financial and Business Cycles in Brazil
Author | : Mr.Ivo Krznar |
Publisher | : International Monetary Fund |
Total Pages | : 28 |
Release | : 2017-01-27 |
ISBN-10 | : 9781475572520 |
ISBN-13 | : 1475572522 |
Rating | : 4/5 (20 Downloads) |
Download or read book Financial and Business Cycles in Brazil written by Mr.Ivo Krznar and published by International Monetary Fund. This book was released on 2017-01-27 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the nexus between the financial cycle and business cycle in Brazil. Cycles are estimated using a variety of commonly-used statistical methods and with a small, semistructural model of the Brazilian economy. An advantage of using the model-based approach is that financial and business cycles can be jointly estimated, allowing information from all key economic relationships to be used in a consistent way. The results show that Brazil is now in the downturn phase of the financial cycle. Moreover, the results underscore the importance of macro-financial linkages and highlight risks to the recovery going forward.