Brazil: an empirical study on fiscal policy transmission

Moreira, Tito Belchior S.

2014-01-02T18:45:36Z

LC/G.2487-P

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This article sets out to empirically determine whether the ratiobetween debt and gross domestic product (GDP); affected real and nominalvariables such as the demand for money, the nominal interest rate,investment and the output gap, between January 1995 and March 2008.The specific aim is to identify fiscal-policy transmission channels and decidewhether this policy was active or passive in the period in question. Thestudy finds empirical evidence that fiscal policy was active and monetarypolicy passive -features that characterize a non-Ricardian model.

Includes bibliography

MATHEMATICAL MODELS; INTEREST RATES; PUBLIC DEBT; MONETARY POLICY; INVESTMENTS; GROSS DOMESTIC PRODUCT; FISCAL POLICY; MODELOS MATEMATICOS; TASAS DE INTERES; DEUDA PUBLICA; POLITICA MONETARIA; INVERSIONES; PRODUCTO INTERNO BRUTO; POLITICA FISCAL;