Brazil: an empirical study on fiscal policy transmission

1 Apr 2011 | Publication

Work area(s)

Economic development Social development

Topic(s)

Fiscal affairs Investment Social investment/spending

Brazil: an empirical study on fiscal policy transmission

  • Publication type: CEPAL Review
  • Author: Moreira, Tito Belchior S.
  • Physical description: páginas. 187-205
  • UN symbol (Signature): LC/G.2487-P
  • Date: 1 April 2011

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.