Fiscal Sustainability and Monetary Versus Fiscal Dominance : Evidence From Brazil, 1991-2000 /

Under a monetary dominant (MD) regime, the primary surplus adjusts to limit debt growth, permitting monetary policy to be conducted independently of fiscal financing requirements. In Brazil, some evidence favors an MD regime for 1995-97, but not for the decade of the 1990s as a whole. While fiscal a...

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Detalhes bibliográficos
Autor principal: Tanner, Evan
Outros Autores: Ramos, Alberto
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2002.
coleção:IMF Working Papers; Working Paper ; No. 2002/005
Acesso em linha:Full text available on IMF
Descrição
Resumo:Under a monetary dominant (MD) regime, the primary surplus adjusts to limit debt growth, permitting monetary policy to be conducted independently of fiscal financing requirements. In Brazil, some evidence favors an MD regime for 1995-97, but not for the decade of the 1990s as a whole. While fiscal adjustments of 1999 yielded a primary surplus of about 3 percent of GDP, consistent with solvency, a credible MD regime would require further adjustments of the primary surplus if debt increases, growth falls, or interest rates rise.
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Descrição Física:1 online resource (30 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students