Behavior of the monetary base and its conditioning factors in Brazil between January 1992 and March 1996
This paper studies the behavior of the monetary base and its proximate determinants
in Brazil between January of 1992 and March of 1996. To achieve this, the paper
analyzes monthly variations of the base, using correlation coefficients and the relative participation
of each determinant on total variation. The analysis demonstrates that there are
several specific differences before and after the Real Plan in the profile of the determinants.
However, the analysis also shows that in both periods one of the major determinants of the
monetary base is the net flow of foreign exchange to Brazil.
JEL Classification: E58; C54.
Keywords: Monetary base Plano Real inflation stabilization