The effects of the capital account liberalization on the fiscal policy
Brazilian Journal of Political Economy, Vol. 26 No. 2 (2006), Apr-Jun / 2006, Pages 258-273
an evaluation of the recent Brazilian case
In recent years there has been some agreement that capital account liberalization have provided restriction on economic policies. This paper provides some evidence for Brazil. I find evidence that capital account liberalization provided limits to fiscal policy in Brazil and its effects can depend on exchange rate policy.
JEL Classification: F41; H60.
Keywords: capital account Liberalization fiscal policy exchange rate