Afonso, António; Gadelha, Sergio; Silva, Agatha - 2021
This paper provides new insights on the relationship between public debt and economic growth in Brazil. We used Granger … period 1998:1-2019:11. We find that: i) debt-to-GDP and GDP growth rate have a bi-directional Granger causality relationship …; ii) debt can improve growth in the short run and becomes harmful in the long run; iii) GDP growth always reduces debt …