El Régimen de Metas de Inflación en Brasil: Breve Descripción y Evaluación de su Desempeño[Brazil's Inflation Targeting Regime: Brief Description and Evaluation of its Performance]

This paper presents a brief description of the operation of Brazil's Inflation Targeting regime, and an evaluation of its performance since its introduction in June 1999 until 2006.The performance of the regime is evaluated comparing the observed inflation values with the officially announced targets and estimating Taylor and McCallum rules. The regime exhibits large and persistent deviations of the inflation rate with respect to the targets;the Taylor and McCallum rules indicate a weak response of the monetary authorities to deviations of the inflation rate from the target values.