04456oam 22011414 450 991015501280332120230913112557.01-4755-5329-3(CKB)3710000000973037(BIP)077138905(IMF)1BRAEA2016002(EXLCZ)99371000000097303720020129d2016 uf 0engtxtrdacontentcrdamediacrrdacarrierBrazil : Selected IssuesWashington, D.C. :International Monetary Fund,2016.1 online resource (159 p.) IMF Staff Country Reports1-4755-5322-6 This paper assesses the importance of financial market developments for the business cycle in Brazil. The results underscore the importance of macro-financial linkages and highlight risks to the recovery going forward. Although some of the rise in credit growth in Brazil can be attributed to financial deepening and rising income levels, it may have implications for economic activity going forward. Cross-country evidence suggests that periods of easy financial conditions can amplify economic fluctuations and possibly lead to adverse economic outcomes. To explore the nexus between the financial cycle and business cycle, cycles are estimated using a variety of commonly-used statistical methods and with a small, semi-structural model of the Brazilian economy. An advantage of using the model-based approach is that financial and business cycles can be jointly estimated, allowing information from all key economic relationships to be used in a consistent way. Financial sector developments are found to be an important source of macroeconomic fluctuations. Financial accelerator models highlight the role of credit and asset prices in shaping the business cycle.IMF Staff Country Reports; Country Report ;No. 2016/349Foreign ExchangeimfInvestments: FuturesimfMacroeconomicsimfMoney and Monetary PolicyimfPublic FinanceimfSocial Security and Public PensionsimfPension FundsimfNon-bank Financial InstitutionsimfFinancial InstrumentsimfInstitutional InvestorsimfMacroeconomics: ConsumptionimfSavingimfWealthimfPrice LevelimfInflationimfDeflationimfPensionsimfCurrencyimfForeign exchangeimfPublic finance & taxationimfFinanceimfPension spendingimfFuturesimfExchange ratesimfAgingimfExpenditureimfFinancial institutionsimfPricesimfPopulation and demographicsimfDerivative securitiesimfExpenditures, PublicimfConsumptionimfEconomicsimfBusiness cyclesimfBrazilimfForeign ExchangeInvestments: FuturesMacroeconomicsMoney and Monetary PolicyPublic FinanceSocial Security and Public PensionsPension FundsNon-bank Financial InstitutionsFinancial InstrumentsInstitutional InvestorsMacroeconomics: ConsumptionSavingWealthPrice LevelInflationDeflationPensionsCurrencyForeign exchangePublic finance & taxationFinancePension spendingFuturesExchange ratesAgingExpenditureFinancial institutionsPricesPopulation and demographicsDerivative securitiesExpenditures, PublicConsumptionEconomicsBusiness cyclesDcWaIMFBOOK9910155012803321Brazil467337UNINA