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The role of fiscal and monetary policies in the Brazilian economy: Understanding recent institutional reforms and economic changes

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  • Afonso, José Roberto
  • Araújo, Eliane Cristina
  • Fajardo, Bernardo Guelber

Abstract

Monetary and fiscal institutions have played a decisive role in the stabilisation of the Brazilian economy since the mid-1990s. In Brazil institutional reforms were predominantly made in response to a succession of internal and, particularly, external crises. Brazil's experience of designing and managing institutions to this end is likely to be of interest to other emerging and low- or middle-income economies. As such, the Brazilian experience offers many lessons to be learned, both in the sense of what could be done and what is better avoided.

Suggested Citation

  • Afonso, José Roberto & Araújo, Eliane Cristina & Fajardo, Bernardo Guelber, 2016. "The role of fiscal and monetary policies in the Brazilian economy: Understanding recent institutional reforms and economic changes," The Quarterly Review of Economics and Finance, Elsevier, vol. 62(C), pages 41-55.
    • Handle: RePEc:eee:quaeco:v:62:y:2016:i:c:p:41-55
    DOI: 10.1016/j.qref.2016.07.005
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    3. Amann, Edmund & Baer, Werner & Trebat, Thomas & Lora, Juan Villa, 2016. "Infrastructure and its role in Brazil's development process," The Quarterly Review of Economics and Finance, Elsevier, vol. 62(C), pages 66-73.
    4. Alade Raji OLAJIDE & Adegboyega Abdul Rasheed AFOLABI & Abiodun Osinuga TITILAYO, 2022. "Effects of Monetary Policy on Financial Inclusion: An Empirical Evidence from Nigeria," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 74-80.
    5. Divino, Jose Angelo & Maciel, Daniel T.G.N. & Sosa, Wilfredo, 2020. "Government size, composition of public spending and economic growth in Brazil," Economic Modelling, Elsevier, vol. 91(C), pages 155-166.
    6. Hillary Chijindu Ezeaku & Imo Godwin Ibe & Uche Boniface Ugwuanyi & N. J. Modebe & Emmanuel Kalu Agbaeze, 2018. "Monetary Policy Transmission and Industrial Sector Growth: Empirical Evidence From Nigeria," SAGE Open, , vol. 8(2), pages 21582440187, April.
    7. Marques, André M., 2022. "Is income inequality good or bad for growth? Further empirical evidence using data for all Brazilian cities," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 360-376.
    8. Gómez, Marcos & Medina, Juan Pablo & Valenzuela, Gonzalo, 2019. "Unveiling the objectives of central banks: Tales of four Latin American countries," Economic Modelling, Elsevier, vol. 76(C), pages 81-100.
    9. Obadia Kyetuza Bishoge & Benatus Norbert Mvile, 2020. "The “resource curse” from the oil and natural gas sector: how can Tanzania avoid it in reality?," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(3), pages 389-404, October.
    10. Bampi, Rodrigo E. & Colombo, Jefferson A., 2021. "Heterogeneous effects of foreign exchange appreciation on industrial output: Evidence from disaggregated manufacturing data," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 431-451.
    11. Marques, André M. & Carvalho, André R., 2022. "Testing the neo-fisherian hypothesis in Brazil," The Quarterly Review of Economics and Finance, Elsevier, vol. 86(C), pages 407-419.

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    More about this item

    Keywords

    Fiscal policy; Monetary policy; Brazilian economy; Macroeconomic stability; Inflation; Fiscal responsibility;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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