%0 Journal Article
%T BrazilĄ¯s Monetary Policy Transmission Puzzle
%A Elder M. Silva
%A Marian Salles Gomes Bellamy
%A Ricardo Augusto Bonfim M. da Rosa
%A Arthur Baptista Feijo
%J Open Access Library Journal
%V 12
%N 12
%P 1-17
%@ 2333-9721
%D 2025
%I Open Access Library
%R 10.4236/oalib.1114533
%X This paper examines the structural distortions introduced by the widespread use of post-fixed bonds in BrazilĄ¯s monetary policy framework. Unlike other economies where monetary tightening adversely affects banksĄ¯ balance sheets, BrazilĄ¯s financial institutions often benefit from such policies due to their exposure to post-fixed instruments. This creates perverse incentives that undermine the effectiveness of monetary policy transmission. Using the concept of Evolutionarily Stable Strategies, we argue that the current equilib-rium is suboptimal and self-reinforcing.
%K Monetary Policy Transmission
%K Financial Incentives
%K Monetary Transmission in Brazil
%K Balance Sheet Channel
%U http://www.oalib.com/paper/6879511