Fiscal and monetary policy rules in Brazil: empirical evidence of monetary and fiscal dominance

Based on the hypothesis that rules of monetary and fiscal policy in Brazil may have been subject to different regimes, present study applies Leeper model (1991 2005) identify chronology regimes terms their active passive character. The are estimated using Markov-switching model, with a monthly database from November 2002 December 2015, which endogenously determined. results obtained indicate dominance occurred 2010 between 2013 2014, while marked much 2003 period 2005–2007. also seeks explain why inflation rate continued rise during 2015 even though Central Bank took an stance year.