Uma nota sobre inflação, déficit e a sustentabilidade

Viviane Luporini

Revista Economia e Sociedade, 2004, vol. 23, 10

Abstract: This note discusses the conditions for a sustainable fiscal policy defined as one that will result in a stable debt/income ratio. It is shown that the usually evoked condition for sustainability, that the real rate of interest be smaller than the rate of the income growth, is not a sufficient one when the government has access to revenue from seignorage collection. The role played by the market and expectations, and the reasons for the difficulties in establishing an empirical relationship between budget deficits and inflation reported in the literature are discussed. It is argued that the way expectations about fiscal consolidation are formed, and the effects of inflation on the government budget might explain the absence of a systematic relationship between deficits and inflation. Yet, despite the empirical results, the reduction or virtual elimination of budget deficits may be considered a stylized fact about successful stabilization programs.

Keywords: Inflation; Deficit; Sustainability. (search for similar items in EconPapers)
JEL-codes: E66 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.eco.unicamp.br/docprod/downarq.php?id=719&tp=a (application/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:euc:ancoec:v:23:y:2004:p:175-184

Access Statistics for this article

More articles in Revista Economia e Sociedade from Instituto de Economia, Universidade Estadual de Campinas (UNICAMP) Contact information at EDIRC.
Bibliographic data for series maintained by Antonio Carlos Macedo e Silva ().