Fiscal Multipliers for Brazil
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Summary:
We find historical fiscal multipliers for Brazil around 0.5, larger than what existing literature typically identifies for the average emerging market. However, spending and public credit multipliers seem to have dropped to near zero since the global financial crisis, as the estimate for the whole sample period (1999-2014) is about ½ of that for precrisis years. By contrast, revenue multipliers have remained broadly stable. We conclude that fiscal consolidations based on expenditure and public credit retrenchment are likely to entail a modest drag on growth in the near term.
Series:
Working Paper No. 2016/079
Subject:
Bank credit Credit Expenditure Financial institutions Fiscal multipliers Fiscal policy Money State-owned banks
English
Publication Date:
March 25, 2016
ISBN/ISSN:
9781484307892/1018-5941
Stock No:
WPIEA2016079
Pages:
16
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