TY - JOUR AU - Campos, Eduardo Lima AU - Cysne, Rubens Penha AU - Madureira, Alexandre L. PY - 2022/08/17 Y2 - 2024/03/28 TI - A further deterioration of the Brazilian fiscal reaction in view of COVID-19 JF - Brazilian Journal of Political Economy JA - BJPE VL - 42 IS - 3 SE - DO - 10.1590/0101-31572022-3286 UR - https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2344 SP - 664-677 AB - <p>The fiscal reaction function measures how the government’s primary surplus<br>reacts to the evolution of public debt. Campos and Cysne (2019b) observed that the<br>reaction function has been almost steadily decreasing since 2012 and it has turned from<br>positive to negative values in 2017 and 2018. In the subsequent period, the improvement<br>of some economic indicators led the fiscal reaction to a recovery. Nevertheless, in 2020,<br>with the advent of COVID-19, health spending and emergency aids caused a sharp fiscal<br>deterioration, leading the fiscal reaction coefficient to assume, again, negative values.</p><p><strong>JEL Classification:</strong> H30; H60; E50.</p> ER -