Fiscal crisis in Brazil: causes and remedy
Autor(a) principal: | |
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Data de Publicação: | 2019 |
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=S0101-31572019000100088 |
Resumo: | ABSTRACT From 2014 to 2017, Brazil experienced unprecedented fiscal deterioration caused by multidimensional factors. According to the economic literature, to cope with such a crisis, it is recommended to adopt a long-term spending cut-based fiscal consolidation program rather than a tax hike-based one. However, as the fiscal crisis evolved recently in Brazil, this article brings another perspective to the policy stance. It suggests a fiscal program that includes a combination of spending cuts and tax hikes. On one hand, the peculiarities of the Brazilian government expenditures demand fiscal reforms with long-lasting impacts but generally with low short-term fiscal effect. On the other hand, as short-term fiscal results anchor confidence, increases in taxes would be an important pillar of the economic policies to mitigate the fiscal deterioration in the short term. The GDP contraction is expected to more severe than a simple spending cut measure but is likely to be less prolonged. |
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Fiscal crisis in Brazil: causes and remedyFiscal crisisBrazilian EconomyFiscal AdjustmentFiscal Consolidation ProgramABSTRACT From 2014 to 2017, Brazil experienced unprecedented fiscal deterioration caused by multidimensional factors. According to the economic literature, to cope with such a crisis, it is recommended to adopt a long-term spending cut-based fiscal consolidation program rather than a tax hike-based one. However, as the fiscal crisis evolved recently in Brazil, this article brings another perspective to the policy stance. It suggests a fiscal program that includes a combination of spending cuts and tax hikes. On one hand, the peculiarities of the Brazilian government expenditures demand fiscal reforms with long-lasting impacts but generally with low short-term fiscal effect. On the other hand, as short-term fiscal results anchor confidence, increases in taxes would be an important pillar of the economic policies to mitigate the fiscal deterioration in the short term. The GDP contraction is expected to more severe than a simple spending cut measure but is likely to be less prolonged.Centro de Economia Política2019-03-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572019000100088Brazilian Journal of Political Economy v.39 n.1 2019reponame:Revista de Economia Políticainstname:EDITORA 34instacron:EDITORA_3410.1590/0101-35172019-2918info:eu-repo/semantics/openAccessHOLLAND,MÁRCIOeng2019-01-28T00:00:00Zoai:scielo:S0101-31572019000100088Revistahttps://centrodeeconomiapolitica.org.br/repojs/index.php/journalONGhttps://centrodeeconomiapolitica.org.br/repojs/index.php/journal/oai||cecilia.heise@bjpe.org.br1809-45380101-3157opendoar:2019-01-28T00:00Revista de Economia Política - EDITORA 34false |
dc.title.none.fl_str_mv |
Fiscal crisis in Brazil: causes and remedy |
title |
Fiscal crisis in Brazil: causes and remedy |
spellingShingle |
Fiscal crisis in Brazil: causes and remedy HOLLAND,MÁRCIO Fiscal crisis Brazilian Economy Fiscal Adjustment Fiscal Consolidation Program |
title_short |
Fiscal crisis in Brazil: causes and remedy |
title_full |
Fiscal crisis in Brazil: causes and remedy |
title_fullStr |
Fiscal crisis in Brazil: causes and remedy |
title_full_unstemmed |
Fiscal crisis in Brazil: causes and remedy |
title_sort |
Fiscal crisis in Brazil: causes and remedy |
author |
HOLLAND,MÁRCIO |
author_facet |
HOLLAND,MÁRCIO |
author_role |
author |
dc.contributor.author.fl_str_mv |
HOLLAND,MÁRCIO |
dc.subject.por.fl_str_mv |
Fiscal crisis Brazilian Economy Fiscal Adjustment Fiscal Consolidation Program |
topic |
Fiscal crisis Brazilian Economy Fiscal Adjustment Fiscal Consolidation Program |
description |
ABSTRACT From 2014 to 2017, Brazil experienced unprecedented fiscal deterioration caused by multidimensional factors. According to the economic literature, to cope with such a crisis, it is recommended to adopt a long-term spending cut-based fiscal consolidation program rather than a tax hike-based one. However, as the fiscal crisis evolved recently in Brazil, this article brings another perspective to the policy stance. It suggests a fiscal program that includes a combination of spending cuts and tax hikes. On one hand, the peculiarities of the Brazilian government expenditures demand fiscal reforms with long-lasting impacts but generally with low short-term fiscal effect. On the other hand, as short-term fiscal results anchor confidence, increases in taxes would be an important pillar of the economic policies to mitigate the fiscal deterioration in the short term. The GDP contraction is expected to more severe than a simple spending cut measure but is likely to be less prolonged. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019-03-01 |
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=S0101-31572019000100088 |
url |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572019000100088 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
10.1590/0101-35172019-2918 |
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.39 n.1 2019 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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1754122482173870080 |