We tested, empirically, whether the Brazilian fiscal policy for the period between 1995: I to 2008: III was active or passive. To analyze fiscal policy transmission mechanisms, we estimated functions by which the public debt/GDP ratio affects investment, primary surplus, output gap and the...

This paper aims to derive an optimal monetary policy rule in a context of fiscal disequilibrium. We analyze the transmission channels of the fiscal and monetary policies through estimation of a Philips curve and the fiscal IS curve. The results indicate that the fiscal deficit is statistically...

This article evaluates whether the Brazilian fiscal policy in the 1980, 1990 and 2000 was believable to cooperate to maintain price stability. Accordingly, if the costs for program maintenance of price stability outweigh the benefits, there is no incentive for the government to keep it. Within...

This article sets out to empirically determine whether the ratio between debt and gross domestic product (GDP) affected real and nominal variables such as the demand for money, the nominal interest rate, investment and the output gap, between January 1995 and March 2008. The specific aim is to...

This article estimates the stance of fiscal policy using the framework of conditional forecasting to evaluate the stance in Brazil since 1997. This indicator is measured as the deviation of forecast of the output gap conditional to the observed values and steady-state values of the instruments...