01842cas a2200253 a 4500 AALejournalIMF008825 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451861280 1018-5941 BD-DhAAL BD-DhAAL Cerisola, Martin. What Drives Inflation Expectations in Brazil? : An Empirical Analysis / Martin Cerisola, R. Gelos. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (22 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 study examines the macroeconomic determinants of survey inflation expectations in Brazil since the adoption of inflation targeting in 1999. The results suggest that the inflation targeting framework has helped anchor expectations, with the dispersion of inflation expectations declining considerably, particularly during periods of high uncertainty. We also find that apart from the inflation target, the stance of fiscal policy, as proxied by the ratio of the consolidated primary surplus to GDP, has been instrumental in shaping expectations. The importance of past inflation in determining expectations appears to be relatively low, and the overall empirical evidence does not suggest the presence of substantial inertia in the inflation process. Mode of access: Internet Gelos, R. IMF Working Papers; Working Paper ; No. 2005/109 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/109/001.2005.issue-109-en.xml IMF e-Library