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Gächter, S., Kaiser, J. and Königstein, M. (2025) Incentives Crowd Out Voluntary Cooperation: Evidence from Gift-Exchange Experiments. Cambridge University Press.

has been cited by the following article:

• TITLE: Brazil’s Monetary Policy Transmission Puzzle

  AUTHORS: Elder M. Silva, Marian Salles Gomes Bellamy, Ricardo Augusto Bonfim M. da Rosa, Arthur Baptista Feijo

  KEYWORDS: Monetary Policy Transmission, Financial Incentives, Monetary Transmission in Brazil, Balance Sheet Channel

  JOURNAL NAME: Open Access Library Journal, Vol.12 No.12, December 3, 2025

  ABSTRACT: This paper examines the structural distortions introduced by the widespread use of post-fixed bonds in Brazil’s monetary policy framework. Unlike other economies where monetary tightening adversely affects banks’ balance sheets, Brazil’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 equilibrium is suboptimal and self-reinforcing.