The Interest Rate During the Lula Government: A Research Agenda

Carlos Vidotto and João Sicsú
Additional contact information
Carlos Vidotto: Universidade Federal Fluminense
João Sicsú: Universidade Federal do Rio de Janeiro

Chapter 11 in Political Economy of Brazil, 2007, pp 180-193 from Palgrave Macmillan

Abstract: Abstract Brazilian interest rates have been consistently high, despite their downward trend in 2006. The real interest rate has rarely been below ten per cent for several years, which seems to be its floor level. Several explanations have been offered for this phenomenon, with important implications to the economy. High interest rates are allegedly used to tame inflation and/or regulate the exchange rate. However, one might argue that high interest rates induce a permanent fiscal imbalance, because of the heavy burden of the domestic public debt, and do not allow the rate of unemployment to fall, due to the restrictions imposed on demand.

Keywords: Exchange Rate; Interest Rate; Monetary Policy; Fiscal Policy; Public Debt (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-39010-2_11

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230390102

DOI: 10.1057/9780230390102_11

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().