01831cas a2200265 a 4500 AALejournalIMF005255 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451870497 1018-5941 BD-DhAAL BD-DhAAL Pagan, A. R. Monetary Transmission in an Emerging Targeter : The Case of Brazil / A. R. Pagan, Douglas Laxton, Luis Catao. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper lays out a structural model that incorporates key features of monetary transmission in typical emerging-market economies, including a bank-credit channel and the role of external debt accumulation on country risk premia and exchange rate dynamics. We use an SVAR representation of the model to study the monetary transmission in Brazil. We find that interest rate changes have swifter effects on output and inflation compared to advanced economies and that exchange rate dynamics plays a key role in this connection. Importantly, the response of inflation to monetary policy shocks has grown stronger and the output-inflation tradeoff improved since the introduction of inflation targeting. Mode of access: Internet Catao, Luis. Laxton, Douglas. IMF Working Papers; Working Paper ; No. 2008/191 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/191/001.2008.issue-191-en.xml IMF e-Library