LIMITS TO THE EXERCISE OF MONETARY SOVEREIGNTY IN PERIPHERAL COUNTRIES
DOI:
https://doi.org/10.55532/1806-8944.2022.177Keywords:
monetary sovereignty, currency hierarchy, peripheral countries, development, Monetary sovereignty, Currency hierarchy, Peripheral countries, DevelopmentAbstract
This paper seeks to analyze, through a partial solution of an analytical model, how the credibility of the Central Bank - that is, whether agents effectively believe that ex-post inflation will be equal to ex- -ante inflation - impacts the decision of private agents to formulate a portfolio of government bonds. The historical and empirical analysis of the Brazilian case seeks to validate the model’s resultsReferences
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• ALFARO, Laura; KANCZUK, Fabio. Debt redemption and reserve accumulation. IMF Economic Review, v. 67, n. 2, p. 261-287, 2019.
• BEVILAQUA, Afonso S.; GARCIA, Márcio GP. Banks, domestic debt intermediation and confidence crises: the recent Brazilian experience. 1999.
• BLINDER, Alan S. Central-bank credibility: why do we care? How do we build it?. American
Economic Review, v. 90, n. 5, p. 1421-1431, 2000.
• CARNEIRO, Dionísio Dias et al. The Structure of the Public Sector Debt in Brazil.
• CUNHA, Pedro Maia da; GARCIA, Márcio GP. A gerência recente do endividamento público
brasileiro. Brazilian Journal of Political Economy, v. 32, n. 2, p. 260-281, 2012.
• DU, Wenxin; PFLUEGER, Carolin E.; SCHREGER, Jesse. Sovereign debt portfolios, bond
risks, and the credibility of monetary policy. National Bureau of Economic Research, 2016.
• FISCHER, Stanley. Welfare aspects of government issue of indexed bonds. 1982.
• FRANCO, Gustavo HB. A moeda e a lei: Uma história monetária brasileira, 1933-2013. Zahar,
2017.
• GARCIA, Márcio GP; SALOMÃO, Juliana. Alongamento dos títulos de renda fixa no Brasil.
Texto para discussão, 2006.
• GARCIA, Márcio et al. The Structure of the Public Sector Debt in Brazil. 1999.
• GARCIA, Márcio Gomes Pinto et al. Economic gains of realized volatility in the Brazilian stock market. Brazilian Review of Finance, v. 12, n. 3, p. 319-349, 2014.
• GOLDFAJN, Ilan; DE PAULA, Áureo Nilo. Uma nota sobre a composição ótima da dívida
pública-reflexões para o caso brasileiro. Texto para discussão, 1999.
30
Revista Cadernos de Finanças Públicas, Brasília, Volume 02, p. 1-39, 2022
• LOWENCRON, Alexandre; GARCIA, Marcio. Monetary Policy Credibility and Inflation Risk
Premium: a model with application to Brazilian data. Texto para discussão, 2007.
• LUCAS, Robert E.; SARGENT, Thomas J. After keynesian macroeconomics. Federal reserve
bank of Minneapolis quarterly review, v. 3, n. 2, p. 1-16, 1979.
• MISSALE, Alessandro; GIAVAZZI, Francesco; BENIGNO, Pierpaolo. Managing the public
debt in fiscal stabilizations: The evidence. National Bureau of Economic Research, 1997.
• OLIVEIRA, Fernando Nascimento; GAGLIANONE, Wagner Piazza. A New Credibility Index
for the Central Bank of Brazil using Kalman Filter: Exploring Signals of Inflation Anchoring in the
Long-Term
• TAYLOR, John B. et al. Expectations, open market operations, and changes in the federal
funds rate. REVIEW-FEDERAL RESERVE BANK OF SAINT LOUIS, v. 83, n. 4, p. 33-48, 2001
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Published
15-09-2022
How to Cite
de Sá Earp, D. V. (2022). LIMITS TO THE EXERCISE OF MONETARY SOVEREIGNTY IN PERIPHERAL COUNTRIES. CADERNOS DE FINANÇAS PÚBLICAS, 22(02). https://doi.org/10.55532/1806-8944.2022.177
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