Identification and Propagation of Shocks in the Brazilian Economy

• Grant number: 24/13435-0
• Support Opportunities: Regular Research Grants
• Start date: December 01, 2024
• End date: November 30, 2027
• Field of knowledge: Applied Social Sciences - Economics - Fiscal and Monetary Policies
• Principal Investigator: Marco Antonio Cesar Bonomo
• Grantee: Marco Antonio Cesar Bonomo
• Host Institution: Instituto de Ensino e Pesquisa (Insper). São Paulo , SP, Brazil
• Associated researchers: Carlos Viana de Carvalho ; Miguel Maria Charters de Oliveira Bandeira da Silva
• Associated scholarship(s): 24/21835-8 - Commodity prices and deforestation in the Amazon, BP.DD; 24/23446-9 - Fiscal and Monetary Interactions, BP.DD

Abstract

This project comprises three subprojects that study the identification and propagation of different shocks in the Brazilian economy. The first investigates the relationship between fiscal policy news and financial and macroeconomic outcomes. The second examines the effects of commodity prices on deforestation in the Amazon and how anti-deforestation policies can be designed to mitigate these effects. The third analyzes the impacts of monetary policy in Brazil. These three subprojects share four fundamental characteristics: they explore the Brazilian context to fill knowledge gaps in the international literature, contribute to the debate on public policies in Brazil, use instrumental variables to identify the shocks of interest and their effects, and generate new series of proxies for macroeconomic shocks in Brazil. (AU)