In the literature it has been argued that developing countries conduct their fiscal policies differ from those practiced in industrialized countries: while the former adopt the kind of pro-cyclical, destabilizing, which intensifies recessions and does not allow the operation of automatic stabilizers, countries of high income typically use counter-cyclical, stabilizer. The main reason that would lead developing countries to adopt such a policy would achieve credibility. The main objective of this research is to analyze the fiscal policy in Brazil between 1999 and 2009 has been pro-cyclical or counter-cyclical and its determinants, and discuss the role of the Fiscal Responsibility Law in this context. To this, will be estimate a model to obtain the structural balance of the fiscal budget, that is, a way to monitor fiscal policy.
News published in Agência FAPESP Newsletter about the scholarship: