Publication:
Policy Mix, Public Debt Management and Fiscal Rules : Lessons from the 2002 Brazilian Crisis

dc.contributor.author Herrera, Santiago
dc.date.accessioned 2012-06-25T14:32:10Z
dc.date.available 2012-06-25T14:32:10Z
dc.date.issued 2005-02
dc.description.abstract Despite significant progress in economic reform throughout the 1990s, and an exemplary development of the policymaking framework in the second part of the decade, Brazil suffered a major public debt and currency crisis in 2002. Though the political origin of the uncertainty cannot be ignored, the author identifies other sources of uncertainty emanating from the policymaking framework: fiscal policy was not responsive to the shocks, public debt instruments were used with several objectives (to stabilize the currency and to lengthen maturity) and there was inadequate supervision of agents holding public debt. Most of the flaws have been fixed following the crisis: a) The primary fiscal balance has been increased, sending the signal that it is a flexible instrument that will be used to ensure commitment of the sovereign to honor its obligations. b) The central bank formally transferred to the Treasury the remaining debt-issuance functions, facilitating a more adequate balancing of different risks involved in debt management. c) Mutual funds' public debt holdings are better regulated, ensuring that end-investors have the proper information to assess the risk of the institutions in which they invest. en
dc.identifier http://documents.worldbank.org/curated/en/2005/02/5635025/policy-mix-public-debt-management-fiscal-rules-lessons-2002-brazilian-crisis
dc.identifier.uri http://hdl.handle.net/10986/8910
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper; No. 3512
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ACCOUNTING
dc.subject ASSET PRICES
dc.subject ASSET RETURNS
dc.subject BALANCE SHEETS
dc.subject BANK RUN
dc.subject BANKING CRISES
dc.subject BANKING SECTOR
dc.subject BOND PRICES
dc.subject BONDS
dc.subject BORROWING
dc.subject CAPITAL EXPENDITURES
dc.subject CAPITAL FLOWS
dc.subject CAPITAL MARKETS
dc.subject CENTRAL BANK
dc.subject CREDIT RISK
dc.subject CURRENCY
dc.subject DEALERS
dc.subject DEBT
dc.subject DEBT BURDEN
dc.subject DEBT INSTRUMENTS
dc.subject DEBT LEVEL
dc.subject DEBT MANAGEMENT
dc.subject DEBT REFINANCING
dc.subject DEBT SERVICE
dc.subject DEBT SUSTAINABILITY
dc.subject DEBTORS
dc.subject DEFICITS
dc.subject DEPOSITS
dc.subject DIRECT INVESTMENT
dc.subject DOMESTIC DEBT
dc.subject DOMESTIC PUBLIC DEBT
dc.subject DRAFTS
dc.subject ECONOMIC REFORM
dc.subject ENTITLEMENTS
dc.subject EQUILIBRIUM
dc.subject EXCESS LIQUIDITY
dc.subject EXCHANGE RATE
dc.subject EXCHANGE RATES
dc.subject EXPENDITURE
dc.subject EXPORTS
dc.subject EXTERNAL DEBT
dc.subject EXTERNAL FINANCING
dc.subject FACE VALUE
dc.subject FINANCIAL CRISES
dc.subject FINANCIAL INTERMEDIARIES
dc.subject FINANCIAL POLICIES
dc.subject FINANCIAL TRANSACTIONS
dc.subject FISCAL CONDITIONS
dc.subject FISCAL POLICY
dc.subject FISCAL REFORM
dc.subject FORECASTS
dc.subject FOREIGN BANKS
dc.subject FUTURE VALUE
dc.subject GDP
dc.subject GOVERNMENT BONDS
dc.subject GOVERNMENT EXPENDITURES
dc.subject GOVERNMENT SECURITIES
dc.subject GROWTH RATE
dc.subject HEDGING
dc.subject ILLIQUIDITY
dc.subject INCOME
dc.subject INDEBTEDNESS
dc.subject INDEXATION
dc.subject INFLATION
dc.subject INFLATION RATE
dc.subject INTEREST PAYMENTS
dc.subject INTEREST RATE
dc.subject INTEREST RATE RISK
dc.subject INTEREST RATES
dc.subject INTEREST/
dc.subject INTERNATIONAL RESERVES
dc.subject LEGAL FRAMEWORK
dc.subject LIABILITY
dc.subject LIQUIDITY
dc.subject LIQUIDITY RISK
dc.subject LOCAL CURRENCY
dc.subject MANDATES
dc.subject MARKET POWER
dc.subject MARKET RISK
dc.subject MARKET VALUE
dc.subject MATURITY
dc.subject MONETARY AUTHORITIES
dc.subject MONETARY POLICY
dc.subject MUTUAL FUND
dc.subject NATIONAL INCOME
dc.subject NET WORTH
dc.subject OIL
dc.subject OPEN MARKET OPERATIONS
dc.subject PRESENT VALUE
dc.subject PRESENT VALUE OF DEBT
dc.subject PRICE CHANGES
dc.subject PRICE CONTROLS
dc.subject PRIMARY DEALERS
dc.subject PRIVATE DEBT
dc.subject PROBABILITY OF DEFAULT
dc.subject PUBLIC DEBT
dc.subject PUBLIC ENTERPRISES
dc.subject PUBLIC SAVINGS
dc.subject REDEMPTION
dc.subject REFINANCING
dc.subject REPO
dc.subject RESERVE REQUIREMENT
dc.subject RESERVE REQUIREMENTS
dc.subject REVENUE SHARING
dc.subject RISK AVERSION
dc.subject RISK MANAGEMENT
dc.subject RISK PREMIUM
dc.subject SAVINGS
dc.subject SECURITIES
dc.subject SOLVENCY
dc.subject SOVEREIGN DEBT
dc.subject SOVEREIGN RISK
dc.subject TAX REFORMS
dc.subject TAX REVENUE
dc.subject TAXPAYERS
dc.subject THEORETICAL MODELS
dc.subject WAGES
dc.subject WEALTH
dc.subject YIELD CURVE
dc.title Policy Mix, Public Debt Management and Fiscal Rules : Lessons from the 2002 Brazilian Crisis en
dspace.entity.type Publication
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2005/02/5635025/policy-mix-public-debt-management-fiscal-rules-lessons-2002-brazilian-crisis
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Finance and Markets
okr.identifier.doi 10.1596/1813-9450-3512
okr.identifier.externaldocumentum 000012009_20050302140719
okr.identifier.internaldocumentum 5635025
okr.identifier.report WPS3512
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/03/02/000012009_20050302140719/Rendered/PDF/WPS3512.pdf en
okr.region.administrative Latin America & Caribbean
okr.region.country Brazil
okr.topic Economic Theory and Research
okr.topic Banks and Banking Reform
okr.topic Environmental Economics and Policies
okr.topic Finance and Financial Sector Development :: Strategic Debt Management
okr.topic Payment Systems and Infrastructure
okr.topic Macroeconomics and Economic Growth :: Economic Stabilization
okr.topic Public Sector Economics and Finance
okr.unit Development Research Group (DECRG)
okr.volume 1 of 1
relation.isAuthorOfPublication b8257292-3111-5480-90dd-5aeb70e52589
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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