Eliane Cristina Araújo

This work aims to investigate the impact of real interest rate, inflationary tax and bank reserves over the behavior of Brazilian economy’s growth rate. Therefore, it uses a theoretical model based on four sectors, which shows the existing relationship among families, government, bank sector and firms. This model was empirically tested using the econometric specification of an Autoregressive Vector – VAR. The data used in this model represent a period that spans from the first quarterly of 1980 until the third quarterly of 2003. This work concludes that the interest rates, the inflationary tax, as well as the bank reserves contribute to generate deviations of the economy’s growth rate of its long run behavior, as anticipated by the theoretical model.