Table 2

Description of the observable factors (Yt) used in the FAVAR model

VariableSourceUnitsDescription
Exchange rateBCB(R$/US$)Nominal exchange rate
IPCAIBGEIndexNational Consumer Price Index
GDPfgvFGV IBREIndexMonthly GDP Monitor
M1BCBTHOUS.UM1 Monetary Aggregate - Median
DebtBCB%Government Gross Debt as a % of GDP, Pre-2008 Methodology
CI_BRBCBIndexCommodities Index - Brazil (in US Dollars)
SWAP180BCB% p.aSwaps180 – DI x fixed-rate – 180 days – period average
SELICBCB% p.aSelic Interest Rate

Note(s): BCB-Central Bank of Brazil; IBRE/FGV – Brazilian Institute of Economics at the Getulio Vargas Foundation and IBGE – Brazilian Institute of Geography and Statistics

Source(s): The authors

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