期刊名称：International Journal of Statistics and Probability
印刷版ISSN：1927-7032
电子版ISSN：1927-7040
出版年度：2021
卷号：13
期号：4
页码：25-39
DOI：10.5539/ijef.v13n4p25
语种：English
出版社：Canadian Center of Science and Education
摘要：This paper investigates the relationship between the quality of institutions and the cyclical properties ofmacroeconomic policies in the Brazilian economy in the recent period. We extend the monetary and fiscal policyrules proposed by Taylor (2000) to incorporate a proxy for institutional quality. In the empirical analysis, weestimate reaction functions for monetary and fiscal policies by the Markov-Switching method. This methodologyallows us to analyze how changes in the quality of institutions might influence the guidance of the fiscal andmonetary policies over the sample period. The major results maintain that both monetary and fiscal policies aresignificantly countercyclical in periods that exhibit higher levels of institutional quality and are pro-cyclical oracyclical in periods which exhibit lower levels of institutional quality. Thus, the quality of institutions plays akey role in the government's ability to implement countercyclical monetary and fiscal policies to stabilize theBrazilian economy over the business cycle.
