  This paper studies the dynamics of Brazilian interest rates for short-term
maturities. The paper employs developed techniques in the econophysics
literature and tests for long-range dependence in the term structure of these
interest rates for the last decade. Empirical results suggest that the degree
of long-range dependence has changed over time due to changes in monetary
policy, specially in the short-end of the term structure of interest rates.
Therefore, we show that it is possible to identify monetary arrangements using
these techniques from econophysics.
