 Impact of external debt and other macroeconomic policies on output in Brazil: a var approachRevista de Analisis Economico – Economic Analysis Review, 2003, vol. 18, issue 2, 97-108 Abstract: This paper uses a VAR model to quantify the relative importance of external debt, exchange rates, monetary policy and other selected variables when explaining output fluctuations in Brazil. Using the money market rate as a policy instrument, impulse response functions indicate that shocks to the interest rate, the external debt, or the inflation rate have an inverse impact on output, while currency and stock prices shocks have a positive effect on economic activity. In the medium run, the explanatory power of the external debt rises while that of the money market rate and the real exchange rate decline. When money is considered as a monetary tool, output responds positively to shocks to the real monetary base or to stock prices and reacts inversely to shocks to the external debt, currency depreciation, or inflation. Therefore, the choice of different monetary policy tools is not neutral when affecting output. Keywords: Var model; external debt; exchange rates; monetary policy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ila:anaeco:v:18:y:2003:i:2:p:97-108 Ordering information: This journal article can be ordered from Access Statistics for this article Revista de Analisis Economico – Economic Analysis Review is currently edited by Carlos Ponce More articles in Revista de Analisis Economico – Economic Analysis Review from Universidad Alberto Hurtado/School of Economics and Business Contact information at EDIRC. |
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