Banks, domestic debt, and crises: The recent Brazilian experience*
Autor(a) principal: | |
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Data de Publicação: | 2002 |
Outros Autores: | |
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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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 |
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=S0101-31572002000400651 |
url |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572002000400651 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
10.1590/0101-31572002-0976 |
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.22 n.4 2002 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 |
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1754122479741173760 |