Dimas M. Fazio

Monetary Expansion and the Banking Lending Channel

This paper examines the bank lending channel, which considers how monetary authority actions affect the variation of loans. We focus on the BRICS (Brazil, Russia, India, China and South Africa) totalizing 1254 banks from five countries in the period 2000–2012 (totalizing 13 years). The empirical results show that the effect of money supply growth on the growth of loans is non-linear and inverted U-shaped. In this context, our results show empirical evidence expansionary monetary policies do not increase the propensity of economic agents to systematically take greater risks on the market. After a certain level of money stock, increases in the money supply do not lead to increased negotiated credit.

Application of Hypothetical Monopoly Test (SSNIP) to the Brazilian Market of Ready-Made Meals and the Role of the Department of Economic Studies

This chapter presents empirical evidence resulted from the application of Hypothetical Monopoly Test—SSNIP to the Brazilian market of readymade meals by the Department of Economic Studies of the Brazilian Competition Authority (CADE). The firm-level data was taken, and the SSNIP test was applied to analyze if the relevant market of the merging companies—JBS/Seara and Massa Leve limited to products of the standard category, while products of the main agent of the market—BRF/Sadia—would be in a different niche or category called premium. It was observed that the hypothesis of a separated market for standard and premium readymade meals is practically null. The proposed merger between JBS/Seara and Massa Leve might create a stronger competitor to diminish the dominance of the market by BRF/Sadia. The operation was approved with no restrictions by CADE in 2014 and has marked a period of increased use of new economic methodologies in CADESs decision. This chapter also describes the history of the establishment of a specific Department of Economics in CADEs new structure.