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This study empirically analyzes the interaction of monetary and fiscal policy in Brazil from 1995 to 2008, focusing on whether fiscal policy was active or passive. It finds that the public debt to GDP ratio significantly affects investment and the output gap, indicating a non-Ricardian regime where fiscal dominance prevails. The research employs various econometric techniques to assess the implications of public debt on economic variables, concluding that fiscal policy plays a crucial role in shaping econom

Author

FARSoares

Language

EN