The Structure of Public Sector Debt in Brazil
The literature on the end of remarkable inflationary processes (Bresciani-Turroni, 1937; Sargent, 1986) calls our attention to one of the favorable aspects of hyperinflations: the fact that high inflation destroys old debts. Because of the central role fiscal deficits play in chronic inflation, the alleviation of the debt burden helps stabilization, and the fact that a large portion of government debt may disappear without the undesirable reputation costs of explicit debt repudiation is even better. In the Brazilian inflationary experience, most of this potentially favorable effect of high inflation on debt has been neutralized by indexation. In December 1994, officially recognized total federal domestic debt was 19. 9% of GDP. The fast growth of public debt in the first four years of stabilization has offset the benefits of the inflation acceleration, which occurred shortly before the onset of monetary reform in July, 1994. By December 1998, this figure was 44. 8% of GDP.
|Date of creation:||Apr 2001|
|Date of revision:|
|Contact details of provider:|| Postal: 1300 New York Avenue, NW, Washington, DC 20577|
Web page: http://www.iadb.org/res
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Garcia, Marcio G. P., 1993. "The Fisher effect in a signal extraction framework The recent Brazilian experience," Journal of Development Economics, Elsevier, vol. 41(1), pages 71-93, June.
- Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
- Cati, Regina Celia & Garcia, Marcio G P & Perron, Pierre, 1999. "Unit Roots in the Presence of Abrupt Governmental Interventions with an Application to Brazilian Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(1), pages 27-56, Jan.-Feb..
- Jeffrey A. Frankel, 1991.
"Quantifying International Capital Mobility in the 1980s,"
in: National Saving and Economic Performance, pages 227-270
National Bureau of Economic Research, Inc.
- Frankel, Jeffrey A., 1989. "Quantifying International Capital Mobility in the 1980s," Department of Economics, Working Paper Series qt4fw7c7bh, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Jeffrey A. Frankel, 1989. "Quantifying International Capital Mobility in the 1980s," NBER Working Papers 2856, National Bureau of Economic Research, Inc.
- Marcio G. P. Garcia & Alexandre Barcinski, 1996.
"Capital flows to Brazil in the nineties: Macroeconomic aspects and the effectiveness of capital controls,"
Textos para discussão
357, Department of Economics PUC-Rio (Brazil).
- Garcia, Marcio G. P. & Barcinski, Alexandre, 1998. "Capital Flows to Brazil in the Nineties: Macroeconomic Aspects and the Effectiveness of Capital Controls," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(3, Part 1), pages 319-357.
- Marcelo de Paiva Abreu & Dionisio Dias Carneiro & Rogerio Ladeira Furquim Werneck, 1994. "Government and economic growth: a three gap view of the long run prospects of the Brazilian economy," Textos para discussão 327, Department of Economics PUC-Rio (Brazil).
- De P. Abreu, Marcelo & Werneck, Rogerio L. F., 1993. "Privatization and regulation in Brazil: The 1990-1992 policies and the challenges ahead," The Quarterly Review of Economics and Finance, Elsevier, vol. 33(Supplemen), pages 21-44.
- Missale, Alessandro & Blanchard, Olivier Jean, 1994.
"The Debt Burden and Debt Maturity,"
American Economic Review,
American Economic Association, vol. 84(1), pages 309-19, March.
- Ilan Goldfajn & Áureo Nilo de Paula, 1999. "Uma nota sobre a composição ótima da dívida pública - reflexões para o caso brasileiro," Textos para discussão 411, Department of Economics PUC-Rio (Brazil).
- Robert T. Price, 1997. "The Rationale and Design of Inflation-Indexed Bonds," IMF Working Papers 97/12, International Monetary Fund.
- Bacha, Edmar L., 1990. "A three-gap model of foreign transfers and the GDP growth rate in developing countries," Journal of Development Economics, Elsevier, vol. 32(2), pages 279-296, April.
- Robert J. Barro, 1995. "Optimal Debt Management," NBER Working Papers 5327, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:idb:wpaper:3121. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Bazan)
If references are entirely missing, you can add them using this form.