Interest rate is going up then it leads to increase in inflation. Which is unusual for CB. The reason why this is happening is that government spending is increasing (in Brazil). Interest rate increase Inflation increases Government spending increase Fiscal situation Fiscal policy should be somehow passive. Macroprudential Policy Financial gap and GDB-at-risk????? Quantile regression thigs? Investors GGB selling? Term Paper Proposal Cointegration? What is the policy implication? Conclusion? What is new finding? Where we are? Where can we go if nothing changes? Is there not any result, success, just stop research question, find another question?
