The debate on the reduction of fiscal deficit in Brazil: a critical post-Keynesian economics

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 beterodox side of the controversy. Adapted from the source document.