You are here

Available in: EnglishEspañol

Mechanisms of default risk transmission and economic policy coordination

Publication cover
Author: Junior, Karlo Marques - Correia, Fernando Motta UN symbol.: LC/G.2694-P p. 31-49; diagrs.; tabls. December 2016


This paper analyses the coordination between monetary and fiscal policy in an emerging economy with an inflation-targeting monetary regime, in a context in which default risk shocks can lead to macroeconomic imbalances. It develops a macrodynamic model in order to capture the mechanisms of default risk transmission and its effects on the definition of reaction functions for the monetary and fiscal authorities. The main findings of the model point to the existence of new mechanisms of default risk transmission associated with price and fiscal stability.

Search publications

See publications list

CEPAL Review no. 120


Get ECLAC updates by email