ECONOMIC DYNAMIC ANDBUSINESS CYCLES IN THE BRAZILIAN ECONOMY: EVIDENCE FOR THE POST-REAL PERIOD

ABSTRACT

The exam of Brazilian Economy’s cyclic in the post-real period is considered a relevant theme when considered that the this it indicates the simultaneous existence of supply and demand shocks. Tring to show it, the models Money-in-the-Utility function (MIU) and Cash-in-Advanced (CIA) have been used. Although the artificial economies simulated -pattern and monetary- have shown higher adequacy to stylized facts when the rigidities of prices and salaries are considered, the volatile behavior of nominal variables had not been completely reproduced in both artificial economy. The effect of monetary shocks can’t be under estimated, because they showed characteristic behavior of economies with a certain level of instability.

KEYWORDS:
business cycles; Money-in-the-Utility function; Cash-in-Advanced; Brazilian economy