Author/Editor:
Publication Date:
January 24, 2017
Electronic Access:
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Summary:
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.
IMF - International Monetary Fund published this content on 24 January 2017 and is solely responsible for the information contained herein.
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Original documenthttp://www.imf.org/en/Publications/WP/Issues/2017/01/24/Financial-and-Business-Cycles-in-Brazil-44577
Public permalinkhttp://www.publicnow.com/view/345BCE6E6480F1FA942FA68D187F9616509FD216
