Financial budget adjustment and public debt carrying cost in Brazil 2002-2021

The paper presents a decomposition of the net interest paid by the Braziliangovernment, in 2002-2021, dividing the expenditure in four parts: the real-interest-ratecost, the inflation cost, the carry cost of fixed-income assets and exchange-rate swaps.The analysis also details the carry cost in term...

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Detalhes bibliográficos
Autores: Jr., Gilberto Borça, Barbosa-Filho, Nelson H.
Formato: artículo
Estado:Versión publicada
Fecha de publicación:2023
País:Brasil
Recursos:EDITORA 34
Repositorio:Revista de Economia Política
Idioma:portugués
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/2388
Acesso em linha:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2388
Access Level:acceso abierto
Palavra-chave:Brazil
fiscal adjustment
net interest paid by the government
Brasil
ajuste fiscal
juros líquidos pagos pelo governo
Descrição
Resumo:The paper presents a decomposition of the net interest paid by the Braziliangovernment, in 2002-2021, dividing the expenditure in four parts: the real-interest-ratecost, the inflation cost, the carry cost of fixed-income assets and exchange-rate swaps.The analysis also details the carry cost in terms of the government’s main financial assets:(international reserves and loans to the BNDES), showing that the financial adjustment of2016-2021 reduced the equilibrium primary balance in around 2.5% of GDP. JEL Classification: E62; H60; N16.