Financial and Business Cycles in Brazil
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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.
Series:
Working Paper No. 2017/012
Subject:
Business cycles Credit Credit cycles Economic growth Financial cycles Financial institutions Financial sector policy and analysis Money State-owned banks
English
Publication Date:
January 24, 2017
ISBN/ISSN:
9781475571042/1018-5941
Stock No:
WPIEA2017012
Pages:
28
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