Credibility of monetary and fiscal policies and country risk: an empirical analysis for the Brazilian case
Name: KIARA DE DEUS DEMURA
Type: MSc dissertation
Publication date: 23/05/2018
Advisor:
Name |
Role |
|---|---|
| RICARDO RAMALHETE MOREIRA | Advisor * |
Examining board:
| Name |
Role |
|---|---|
| EDSON ZAMBON MONTE | Internal Examiner * |
| RICARDO RAMALHETE MOREIRA | Advisor * |
Summary: This work analyzes the Brazilian country risk between 2003 and 2016, in order to verify how much the credibility of economic policies can contributes to reduce country risk. Observes the impacts of high default risk on the economy, and which are the country risk determinants pointed out in the literature. Thus, discusses the importance of reducing country risk and what should make to this happen. So, reviews the literature and uses quantitative analysis through implementation of econometric methods OLS and GMM. The results found highlight the importance of fiscal and monetary efforts to reduce Brazilian country risk. Although the monetary credibility indices were not significant to reduce the country risk, as observed by Montes and Tiberto (2012), the concern with inflation in Brazil remains and raises the risk of default.
