POLÍTICA MONETÁRIA E CICLOS REGIONAIS NO BRASIL: UMA INVESTIGAÇÃO DAS CONDICÕES PARA UMA ÁREA MONETÁRIA ÓTIMA

Abstract

The main purpose of this paper is the empirical investigation of the business cycles responses of each of the five Brazilian regions to monetary policy innovations and other shocks. We applied a methodology integrating unobserved components and vector auto-regressions (VAR). We identified not only common and idiosyncratic sources of innovation, but also common and idiosyncratic responses to common shocks. We concluded that the Brazilian regions present asymmetric effects to common monetary shocks.