Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/315179 
Year of Publication: 
2025
Series/Report no.: 
Texto para Discussão No. 3094
Publisher: 
Instituto de Pesquisa Econômica Aplicada (IPEA), Brasília
Abstract: 
The management of Brazil's public debt imposes a high fiscal cost due to the burden of interest payments. A key factor contributing to the substantial cost of servicing public debt, which hinders the balance of public accounts, is the structurally high nominal and real basic interest rates. The evidence presented here suggests the existence of cost asymmetries in the stock of Domestic Federal Public Securities Debt (DFPSD) throughout the Selic rate. The average cost of the DFPSD aligns with the Selic rate during its upward phase. However, in the downward phase, the gap between the Selic rate and the average cost of the DFPSD stock widens. Therefore, the asymmetry in fiscal costs throughout the Selic rate cycle can be explained, at least in part, by the institutional arrangement of public debt management, particularly the conventions that shape the behavior of private economic agents trading in DFPSD.
Subjects: 
Selic rate
DFPSD
TFB
NTB
NTN-B
JEL: 
E4
G1
H6
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.