THE ROLE OF THE FOREIGN CURRENCY LINKED DEBT IN BRAZILIAN PUBLIC DEBT / A IMPORTÂNCIA DA DÍVIDA CAMBIAL NO ENDIVIDAMENTO PÚBLICO BRASILEIRO

AUTOR(ES)
DATA DE PUBLICAÇÃO

2004

RESUMO

Concerning the composition of the public debt, the recent growth in the foreign currency linked debt provoked the debate about sustainability of the public debt. The objective of this work is to analyze the management of the foreign currency linked debt from 1994 to 2003. The evolution of the composition and its historical process is emphasized. A model that estimates the optimal internal debt composition through cost and risk minimization is applied to recent Brazilian data. It is also analyzed the optimal monetary police facing an external crises for a country that has a high level of foreign currency linked debt. The results suggest that the optimal composition of the public debt implies a massive use of price linked indexed bonds. And also, for facing an external crisis, the optimal monetary policy should be restrictive since the foreign currency linked debt is in such a high level.

ASSUNTO(S)

politica monetaria divida cambial public debt monetary policy divida publica estrutura da divida foreign currency debt debt structure

ACESSO AO ARTIGO

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