Divida externa, crescimento económico e ajustamento fiscal

Abstract

This paper aims al examining the role of fiscal adjustment in the analysis of the constraints to economic growth in debt-ridden developing economies. It presents a simple linear analytical framework which is used to contrast different views on growth constraints. Then, it explores the effects of removing some of the simplifications of the initial model and points to some immediate extensions of the results. Finally, an application of the analytical framework developed in the paper is presented, using some stylized parameters for the Brazilian economy, Implications for the evaluation of the benefits of foreign debt reduction are draw