INTEREST RATES, INFLATION, AND GROWTH: INSIGHTS FROM BRAZIL’S MONETARY POLICY
DOI:
https://doi.org/10.17605/Keywords:
Monetary Policy, Economic Growth, Money Supply, Interest Rate, Inflation, Brazil, Emerging MarketsAbstract
This paper examines the impact of monetary policy instruments on Brazil’s economic growth from 1999 to 2023. Using annual macroeconomic data and applying econometric techniques including Ordinary Least Squares (OLS), Augmented Dickey-Fuller (ADF) tests, Variance Inflation Factor (VIF) analysis, and Durbin-Watson statistics, the study evaluates the relationship between GDP growth and key policy variables such as money supply, interest rate, and inflation. Results indicate that while the money supply exhibits a positive correlation with GDP growth, high interest rates and inflation tend to exert a dampening effect. The findings contribute to the understanding of how monetary policy shapes economic performance in emerging markets, offering implications for policymakers seeking sustainable growth strategies.
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