Banks, domestic debt, and crises: The recent Brazilian experience*

Detalhes bibliográficos
Autor(a) principal: BEVILAQUA,AFONSO S.
Data de Publicação: 2002
Outros Autores: GARCIA,MÁRCIO G. P.
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=S0101-31572002000400651
Resumo: ABSTRACT This paper examines the recent evolution of the Brazilian public domestic debt and interprets it in light of the confidence crisis literature. The analysis of the recent developments in the Brazilian public domestic debt market shows that the likelihood of a default must not be assessed only using simple summary aggregate measures of public domestic debt size and maturity, but must also consider other structural aspects. Our analysis emphasizes the two main pillars of the Brazilian public domestic debt market: home-bias and the role of the banking sector in intermediating the debt. Evidence from yields of a “perfectly” indexed bond shows that the rollover premium was very small when the devaluation occurred, and is still fairly small by October, 1999, indicating that the rollover of the public domestic debt is not, so far, a serious problem. Positive prospects for the public domestic debt market will depend, however, on the Brazilian government maintaining the current fiscal austerity program.
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spelling Banks, domestic debt, and crises: The recent Brazilian experience*BanksPublic DebtCurrency CrisesBrazilian EconomyABSTRACT This paper examines the recent evolution of the Brazilian public domestic debt and interprets it in light of the confidence crisis literature. The analysis of the recent developments in the Brazilian public domestic debt market shows that the likelihood of a default must not be assessed only using simple summary aggregate measures of public domestic debt size and maturity, but must also consider other structural aspects. Our analysis emphasizes the two main pillars of the Brazilian public domestic debt market: home-bias and the role of the banking sector in intermediating the debt. Evidence from yields of a “perfectly” indexed bond shows that the rollover premium was very small when the devaluation occurred, and is still fairly small by October, 1999, indicating that the rollover of the public domestic debt is not, so far, a serious problem. Positive prospects for the public domestic debt market will depend, however, on the Brazilian government maintaining the current fiscal austerity program.Centro de Economia Política2002-12-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572002000400651Brazilian Journal of Political Economy v.22 n.4 2002reponame:Revista de Economia Políticainstname:EDITORA 34instacron:EDITORA_3410.1590/0101-31572002-0976info:eu-repo/semantics/openAccessBEVILAQUA,AFONSO S.GARCIA,MÁRCIO G. P.eng2020-09-21T00:00:00Zoai:scielo:S0101-31572002000400651Revistahttps://centrodeeconomiapolitica.org.br/repojs/index.php/journalONGhttps://centrodeeconomiapolitica.org.br/repojs/index.php/journal/oai||cecilia.heise@bjpe.org.br1809-45380101-3157opendoar:2020-09-21T00:00Revista de Economia Política - EDITORA 34false
dc.title.none.fl_str_mv Banks, domestic debt, and crises: The recent Brazilian experience*
title Banks, domestic debt, and crises: The recent Brazilian experience*
spellingShingle Banks, domestic debt, and crises: The recent Brazilian experience*
BEVILAQUA,AFONSO S.
Banks
Public Debt
Currency Crises
Brazilian Economy
title_short Banks, domestic debt, and crises: The recent Brazilian experience*
title_full Banks, domestic debt, and crises: The recent Brazilian experience*
title_fullStr Banks, domestic debt, and crises: The recent Brazilian experience*
title_full_unstemmed Banks, domestic debt, and crises: The recent Brazilian experience*
title_sort Banks, domestic debt, and crises: The recent Brazilian experience*
author BEVILAQUA,AFONSO S.
author_facet BEVILAQUA,AFONSO S.
GARCIA,MÁRCIO G. P.
author_role author
author2 GARCIA,MÁRCIO G. P.
author2_role author
dc.contributor.author.fl_str_mv BEVILAQUA,AFONSO S.
GARCIA,MÁRCIO G. P.
dc.subject.por.fl_str_mv Banks
Public Debt
Currency Crises
Brazilian Economy
topic Banks
Public Debt
Currency Crises
Brazilian Economy
description ABSTRACT This paper examines the recent evolution of the Brazilian public domestic debt and interprets it in light of the confidence crisis literature. The analysis of the recent developments in the Brazilian public domestic debt market shows that the likelihood of a default must not be assessed only using simple summary aggregate measures of public domestic debt size and maturity, but must also consider other structural aspects. Our analysis emphasizes the two main pillars of the Brazilian public domestic debt market: home-bias and the role of the banking sector in intermediating the debt. Evidence from yields of a “perfectly” indexed bond shows that the rollover premium was very small when the devaluation occurred, and is still fairly small by October, 1999, indicating that the rollover of the public domestic debt is not, so far, a serious problem. Positive prospects for the public domestic debt market will depend, however, on the Brazilian government maintaining the current fiscal austerity program.
publishDate 2002
dc.date.none.fl_str_mv 2002-12-01
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dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572002000400651
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dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/0101-31572002-0976
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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.22 n.4 2002
reponame:Revista de Economia Política
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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
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