Research Catalog

Title

Consolidating Macroeconomic Adjustment in Brazil [electronic resource] / Luiz de Mello and Diego Moccero

Author

de Mello, Luiz.

Publication

Paris : OECD Publishing, 2006.

Details

Additional Authors

Moccero, Diego.

Description

42 p.; 21 x 29.7cm.

Summary

Brazil has made considerable progress in recent years towards consolidating macroeconomic stability, which is a key framework condition for sustained growth. Monetary policy continues to respond swiftly to changes in the inflation outlook, anchoring expectations. Fiscal policy has been guided by debt sustainability considerations, delivering primary budget surpluses that have often exceeded the end-year targets. Nevertheless, while the public debt-to-GDP has been reduced, it remains high, especially in comparison with other emerging-market economies. Brazil?s overarching macroeconomic challenge is therefore to continue to reduce the public debt overhang while improving the quality of fiscal adjustment, which has so far been underpinned by revenue hikes, rather than a retrenchment of expenditure commitments. To do so, measures will need to be taken to arrest the increase in current spending, especially on pensions, paving the way for subsequently removing distortions and reducing the tax burden over the medium to longer term, once the debt-to-GDP ratio has been reduced in a sustainable manner. The favourable domestic macroeconomic environment, with falling inflation and improving growth prospects, appears propitious for reform towards the gradual phasing-out of directed credit and a reduction in compulsory reserve requirements.

Series Statement

OECD Economics Department Working Papers, 1815-1973 ; no.531

Uniform Title

OECD Economics Department Working Papers, no.531.

Subject

• Economics
• Brazil

LCCN

10.1787/361015676222

OCLC

oecd-lib-002095

Author

de Mello, Luiz.

Title

Consolidating Macroeconomic Adjustment in Brazil [electronic resource] / Luiz de Mello and Diego Moccero

Imprint

Paris : OECD Publishing, 2006.

Series

OECD Economics Department Working Papers, 1815-1973 ; no.531

OECD Economics Department Working Papers, 1815-1973 ; no.531.

Connect to:

http://dx.doi.org/10.1787/361015676222

Indexed Term

Economics

Brazil

Added Author

Moccero, Diego.

Other Standard Identifier

10.1787/361015676222 doi