Brazilian Phillips Curve: An Approach Based on Regional Data
Phillips Curve. Inflation Expectations. Brazilian Economy.
The main objective of this work is to investigate the relationship between inflation and unemployment in Brazil during the period from 2013 to 2019, which was marked by significant variations in both variables due to conjectural changes. Based on data from IBGE, panel regressions are employed using specifications that allow the estimation of the Phillips Curve with regional data. The results indicate that labor market dynamics do not contribute to explaining inflation movements; instead, these changes are largely driven by inflation expectations.