Abstract

LOPES, Mariana de Lourdes Moreira  and  MOLLO, Maria de Lourdes Rollemberg. The debate over the reduction of the fiscal deficit in Brazil: a post-Keynisian critique. Nova econ. [online]. 2011, vol.21, n.1, pp. 67-103. ISSN 0103-6351.  http://dx.doi.org/10.1590/S0103-63512011000100003.

The article analyses the debate over fiscal deficit reduction in Brazil from a post-Keynesian perspective. After an overview of the conclusions about the role of money and of the State that are the basis of the controversies about fiscal policy, monetary policy and the consequent prescribed manner of reducing fiscal deficits, the article illustrates this debate with estimates of VAR models, and agrees with the heterodox side of the controversy.

Keywords : Post-Keynesianism; fiscal policy; monetary policy.