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Brazil: an empirical study on fiscal policy transmission

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  • Moreira, Tito Belchior S.

Abstract

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.

Suggested Citation

  • Moreira, Tito Belchior S., 2011. "Brazil: an empirical study on fiscal policy transmission," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    • Handle: RePEc:ecr:col070:11478
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    8. Olivier Blanchard, 2004. "Fiscal Dominance and Inflation Targeting: Lessons from Brazil," NBER Working Papers 10389, National Bureau of Economic Research, Inc.
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    12. Mário Jorge Mendonça & Luis Alberto Medrano & Adolfo Sachsida, 2009. "Avaliando os Efeitos da Política Fiscal no Brasil: Resultados de um Procedimento de Identificação Agnóstica," Discussion Papers 1377, Instituto de Pesquisa Econômica Aplicada - IPEA.
    13. Ronald D. Kneebone, 1989. "On Macro-economic Instability under a Monetarist Policy Rule in a Federal Economy," Canadian Journal of Economics, Canadian Economics Association, vol. 22(3), pages 673-685, August.
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    1. Moreira, Tito Belchior Silva & Souza, Geraldo Silva & Ellery, Roberto, 2013. "An Evaluation of the tolerant to higher inflation rate in the short run by the Brazilian Central Bank in the period 2001-2012," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 67(4), November.

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