Moreira, Ajax; Rocha, Katia - 2011
The study presents a macro-finance model to analyze the impacts of a fiscal policy shock in the Brazilian term … structure of interest rate in the period 1999-2010. Fiscal policy explains a higher proportion of the long-term interest rate …-term interest rate (6% of the five years rate). Fiscal policy austerity, represented by an increase in the primary budget surplus …