The Structure of Public Sector Debt in Brazil

Afonso S. Bevilaqua

No 3121, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: The literature on the end of remarkable inflationary processes (Bresciani-Turroni, 1937; Sargent, 1986) calls our attention to one of the favorable aspects of hyperinflations: the fact that high inflation destroys old debts. Because of the central role fiscal deficits play in chronic inflation, the alleviation of the debt burden helps stabilization, and the fact that a large portion of government debt may disappear without the undesirable reputation costs of explicit debt repudiation is even better. In the Brazilian inflationary experience, most of this potentially favorable effect of high inflation on debt has been neutralized by indexation. In December 1994, officially recognized total federal domestic debt was 19. 9% of GDP. The fast growth of public debt in the first four years of stabilization has offset the benefits of the inflation acceleration, which occurred shortly before the onset of monetary reform in July, 1994. By December 1998, this figure was 44. 8% of GDP.

Date: 2001-04
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.iadb.org/research/pub_hits.cfm?pub_id=R ... le_name=pubR-424.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.iadb.org/research/pub_hits.cfm?pub_id=R-424&pub_file_name=pubR-424.pdf [301 Moved Permanently]--> https://www.iadb.org/research/pub_hits.cfm?pub_id=R-424&pub_file_name=pubR-424.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idb:wpaper:3121

Access Statistics for this paper

More papers in Research Department Publications from Inter-American Development Bank, Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Felipe Herrera Library ().