Abstract
Abstract The study aims to evaluate the effects of monetary policy transmission mechanism in car sales in Brazil, after the Real Plan. The representativeness of the auto industry in the Brazilian economy is significant. Therefore, to provide an analysis of the actions of monetary policies on car sales is essential to define schedules in the industry. Thus, the methodology been based on the use of Vector Auto Regressive (VAR) with a Vector Error Correction Model (VECM), supported by econometric tests. The results showed that there is a relationship of monetary policy actions in car sales in Brazil.
Highlights
In order to stop the long process of high inflation that has intensified since the mid-1980s in the Brazilian economy, been implemented in 1994, the Real Plan
This study aims to evaluate the effects of the monetary policy transmission mechanisms on car sales in Brazil in the period from January 1995 to December 2014
This study aims to assess the impact of monetary policy on vehicle sales, a horizon of analysis January 1995 to December 2014, taking into account as macroeconomic variables for monetary policy: the monetary aggregate, the internal price index, the rate of real effective exchange rate and the real interest rate
Summary
In order to stop the long process of high inflation that has intensified since the mid-1980s in the Brazilian economy, been implemented in 1994, the Real Plan. The steps of the Plan can been summarized as follows: i) achieving fiscal adjustment short term - with the creation of the Immediate Action Plan and the Emergency Social Fund; ii) de-indexation of the economy through a monetary reform - creating a fully indexed unit of account, the Real Value Unit (RVU), later transformed into currency, the Real, which replaced the Received Jan. 5, 2017 - Accepted Aug. 31, 2017 Financial support: None Despite the fears of many, the overshooting of the exchange rate did not result in the return of inflation and stability been preserved
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