How do Global, US, and Domestic Uncertainty Shocks Impact Inflation and Monetary Policy in BRICS Countries? Evidence from PSVAR
Using a Panel Structural Vector Autoregression (PSVAR) model, this study reveals that global, US, and domestic uncertainty shocks significantly and persistently impact inflation and monetary policy rates across BRICS nations, with asymmetric negative effects observed in Brazil, India, South Africa, and Saudi Arabia compared to China's relative resilience, thereby underscoring the need for tailored policy coordination to mitigate macroeconomic volatility.