%0 Journal Article
%T Nonlinear mechanisms of the exchange rate pass-through: a Phillips curve model with threshold for Brazil
%A Correa
%A Arnildo da Silva
%A Minella
%A Andr¨¦
%J Revista Brasileira de Economia
%D 2010
%I Funda??o Get¨²lio Vargas
%R 10.1590/S0034-71402010000300001
%X this paper investigates the presence of nonlinear mechanisms of pass-through from the exchange rate to inflation in brazil. in particular, it estimates a phillips curve with a threshold for the pass-through. the paper examines whether the short-run magnitude of the pass-through is affected by the business cycle, direction and magnitude of exchange rate changes, and exchange rate volatility. the results indicate that the short-run pass-through is higher when the economy is growing faster, when the exchange rate depreciates above some threshold and when exchange rate volatility is lower.
%K exchange rate pass-through
%K threshold
%K inflation
%K nonlinearity
%K brazil.
%U http://www.scielo.br/scielo.php?script=sci_abstract&pid=S0034-71402010000300001&lng=en&nrm=iso&tlng=en