Escaping the debt constraint on growth: a suggested monetary policy for Brazil

Detalhes bibliográficos
Autor(a) principal: PALLEY,THOMAS I.
Data de Publicação: 2004
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista de Economia Política
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572004000100038
Resumo: ABSTRACT Existing interest rates imply explosive debt dynamics for Brazil. It also faces rising inflation from earlier currency depreciations, which could trigger future depreciation. These conditions impose a policy contradiction. Brazil needs lower interest rates for debt sustainability, but tight monetary policy to avoid exchange rate depreciation and inflation. The paper develops a strategy to escape this contradiction. Policy must bolster investor confidence to lower external interest rates, lower domestic interest rates to reduce debt service burdens, and implement domestic credit creation controls to control inflation.
id EDITORA_34-1_2b9c4dedf01be033da421f9e8764ea84
oai_identifier_str oai:scielo:S0101-31572004000100038
network_acronym_str EDITORA_34-1
network_name_str Revista de Economia Política
repository_id_str
spelling Escaping the debt constraint on growth: a suggested monetary policy for BrazilDebt trapinterest ratesexchange ratesBrazilABSTRACT Existing interest rates imply explosive debt dynamics for Brazil. It also faces rising inflation from earlier currency depreciations, which could trigger future depreciation. These conditions impose a policy contradiction. Brazil needs lower interest rates for debt sustainability, but tight monetary policy to avoid exchange rate depreciation and inflation. The paper develops a strategy to escape this contradiction. Policy must bolster investor confidence to lower external interest rates, lower domestic interest rates to reduce debt service burdens, and implement domestic credit creation controls to control inflation.Centro de Economia Política2004-03-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572004000100038Brazilian Journal of Political Economy v.24 n.1 2004reponame:Revista de Economia Políticainstname:EDITORA 34instacron:EDITORA_3410.1590/0101-31572004-1635info:eu-repo/semantics/openAccessPALLEY,THOMAS I.eng2020-06-15T00:00:00Zoai:scielo:S0101-31572004000100038Revistahttps://centrodeeconomiapolitica.org.br/repojs/index.php/journalONGhttps://centrodeeconomiapolitica.org.br/repojs/index.php/journal/oai||cecilia.heise@bjpe.org.br1809-45380101-3157opendoar:2020-06-15T00:00Revista de Economia Política - EDITORA 34false
dc.title.none.fl_str_mv Escaping the debt constraint on growth: a suggested monetary policy for Brazil
title Escaping the debt constraint on growth: a suggested monetary policy for Brazil
spellingShingle Escaping the debt constraint on growth: a suggested monetary policy for Brazil
PALLEY,THOMAS I.
Debt trap
interest rates
exchange rates
Brazil
title_short Escaping the debt constraint on growth: a suggested monetary policy for Brazil
title_full Escaping the debt constraint on growth: a suggested monetary policy for Brazil
title_fullStr Escaping the debt constraint on growth: a suggested monetary policy for Brazil
title_full_unstemmed Escaping the debt constraint on growth: a suggested monetary policy for Brazil
title_sort Escaping the debt constraint on growth: a suggested monetary policy for Brazil
author PALLEY,THOMAS I.
author_facet PALLEY,THOMAS I.
author_role author
dc.contributor.author.fl_str_mv PALLEY,THOMAS I.
dc.subject.por.fl_str_mv Debt trap
interest rates
exchange rates
Brazil
topic Debt trap
interest rates
exchange rates
Brazil
description ABSTRACT Existing interest rates imply explosive debt dynamics for Brazil. It also faces rising inflation from earlier currency depreciations, which could trigger future depreciation. These conditions impose a policy contradiction. Brazil needs lower interest rates for debt sustainability, but tight monetary policy to avoid exchange rate depreciation and inflation. The paper develops a strategy to escape this contradiction. Policy must bolster investor confidence to lower external interest rates, lower domestic interest rates to reduce debt service burdens, and implement domestic credit creation controls to control inflation.
publishDate 2004
dc.date.none.fl_str_mv 2004-03-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572004000100038
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572004000100038
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/0101-31572004-1635
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Centro de Economia Política
publisher.none.fl_str_mv Centro de Economia Política
dc.source.none.fl_str_mv Brazilian Journal of Political Economy v.24 n.1 2004
reponame:Revista de Economia Política
instname:EDITORA 34
instacron:EDITORA_34
instname_str EDITORA 34
instacron_str EDITORA_34
institution EDITORA_34
reponame_str Revista de Economia Política
collection Revista de Economia Política
repository.name.fl_str_mv Revista de Economia Política - EDITORA 34
repository.mail.fl_str_mv ||cecilia.heise@bjpe.org.br
_version_ 1754122480025337856

Registros relacionados