WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 13, 2016
Business Cycles in the Brazilian Economy in the Post-Real Period: an Analysis from Technological and Monetary Shocks
Author: Reisoli Bender Filho
Abstract: This study is an examination of the dynamic properties of the Brazilian economy in the period following the implementation of the Real plan in the presence of technological and monetary shocks. The money-in-the-utility function model (MIU) has been used, which assumes that utility generates money by incorporating real money balances in the utility function of economic agents. To identify how business cycles respond to shocks, simulations that consider a benchmark economy and a monetary economy were conducted. The results show that in the benchmark economy the adherence was found only for real variables, while the volatility of nominal variables’ was estimated in comparison to the stylized facts of the real economy; the simulation of monetary economy produced a better adjustment of monetary variables and the movements over the cycle, indicating the non-rejection of real effects in the long-term dynamics in the economy from monetary shocks.
Keywords: business cycles, monetary and technological shocks, Brazilian economy in the post-Real period
Pages: 30-43WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 13, 2016, Art. #4