@article{Ramalho Ribeiro da Fonseca_Cristina de Araújo_Araújo_2019, title={Non-linearity between exchange and prices in Brazil and implications for an economic development strategy}, volume={39}, url={https://centrodeeconomiapolitica.org/repojs/index.php/journal/article/view/36}, DOI={10.1590/0101-31572019-2877}, abstractNote={<p>The objective of this article is to perform an analysis of monetary policy in Brazil, using a Markov Chain Autoregressive Vector (MS-VAR) model, in the search for evidence of non-linearity in the relationship between exchange and prices in Brazil. The analysis showed that in periods of exchange appreciation, both on the demand side and the supply side, there is a set of forces that determine a downward trajectory for price levels, suggesting that the exchange rate plays a fundamental role in the control of inflation. However, there is a need to reassess the role of the exchange rate in Brazil.</p> <p><strong>JEL Classification:</strong> E44; E52; O23.</p>}, number={2}, journal={Brazilian Journal of Political Economy}, author={Ramalho Ribeiro da Fonseca, Mateus and Cristina de Araújo, Eliane and Araújo, Elisangela}, year={2019}, month={Apr.}, pages={263-284} }