The effect of monetary and fiscal credibility on public debt: empirical evidence from the Brazilian economy |
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| Authors: | Helder Ferreira de Mendonça Gabriela Elise Auel |
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| Affiliation: | Department of Economics and National Council for Scientific and Technological Development (CNPq), Fluminense Federal University, Rio de Janeiro, Brazil |
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| Abstract: | This study relates to the literature regarding credibility effect on public debt for developing economies under inflation targeting. The novelty is the investigation of effects of both monetary and fiscal credibility on public debt and its management. The main idea is that high credibility might improve public debt management. With this purpose, this paper addresses empirical evidence based on the Brazilian experience. The findings denote that credibility is an important instrument to improve the public debt management under inflation targeting. |
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| Keywords: | Public debt fiscal credibility monetary credibility inflation targeting |
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