@article{Braga_Welch_André_1987, title={The imbalance of the Brazilian public sector: alternative scenarios}, volume={7}, url={https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1655}, DOI={10.1590/0101-31571987-3005}, abstractNote={<p>The Brazilian public sector disequilibrium, as measured by growth in the global<br />net public sector debt to GDP ratio, is examined with and without the “Plano Cruzado”.<br />Two models are used, one based upon a discrete time framework and the other based upon a<br />continuous time framework, to trace paths of the debt-GDP ratio for the rest of the decade<br />concentrating on the 1985-1990 period. Two major conclusions are reached. The first, of a<br />theoretical nature, is that discrete-time models are inappropriate in an inflationary context<br />as they severely underestimate the inflation tax. The second is that the Plano Cruzado may<br />put strong pressure on government finances due to the drastic fall in the inflation tax.</p> <p><strong>JEL Classification:</strong> H63; E31.</p>}, number={3}, journal={Brazilian Journal of Political Economy}, author={Braga, Carlos Alberto Primo and Welch, John H. and André, Paulo de Tarso Afonso de}, year={1987}, month={Jul.}, pages={299-311} }