Can we say that in the period from 2003 to 2015, with high indebtedness in the Brazilian economy, fiscal dominance occurred?

Authors

  • Daniel Fichman Santos
  • Marcelo Ladvocat Professor titular de Economia e Finanças pela UniAlfa

Keywords:

Fiscal Policy, Monetary Policy, Government Expenditure, Deficit and Surplus

Abstract

The present work aims to verify a relationship between the primary result and a net debt of the public sector, verifying the existence and effect of fiscal dominance in the Brazilian economy. As well as the importance of monetary policy and its independence in relation to fiscal policies and the non-significant effects of fiscal dominance on the economy. We used a VAR model approach with Granger causality test support. The results suggest that public indebtedness compromises an interaction between a fiscal policy and a monetary policy, causing the effect of fiscal dominance.

Author Biographies

Daniel Fichman Santos

Bacharel em ciências econômicas pela Faculdade Alves Faria. Mestre em economia pela Universidade Federal de Goiás – UFG

Marcelo Ladvocat, Professor titular de Economia e Finanças pela UniAlfa

Doutor em Economia pela Universidade Católica de Brasília - UCB. Professor titular de Economia e Finanças pela UniAlfa. E-mail: marcelo.ladvocat@gmail.br

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Published

2020-07-22

Issue

Vol. 1 No. 1 (2020): Janeiro / junho

Section

Artigos