Interaction between the Financial Market and Economic Policies: An Approach Based on the Crisis Caused by the COVID-19 in Brazil
Journal Title: Journal of Economics, Finance and Management Studies - Year 2020, Vol 3, Issue 12
Abstract
The COVID-19 has social and economic impacts, especially in emerging countries like Brazil. The Brazilian’s context was different from the rest of the world, because while the other countries have to manage social and economic crises, Brazil also had to manage a political crisis caused by the president Jair Bolsonaro. The study aimed to analyze the importance of the fiscal, monetary and foreign exchange policies adopted by the Brazilian government and its effect on the stock exchange. To analyze the impacts of the COVID-19 in Brazilian economy, a time series analyses was conducted with the Vector Autoregressive Model. The variables analyzed by the study were: government spending, basic interest rate, Ibo Vespa index and exchange rate. The result highlights the relevance of expansive fiscal policy as a positive driver for investment intentions in the financial market. Although this behavior is not easy to understand, an example that can support this result is the indirect purchase of government bonds through the Central Bank.
Authors and Affiliations
Leonardo Maso Nasar , Rodrigo Farias da Costa Leite , Jorge Luis Sanchez Arevalo
Keywords
Related Articles
- EP ID EP691408
- DOI 10.47191/jefms/v3-i12-12
- Views 171
- Downloads 0
Competition between Professional Universities and Traditional Universities -A Case for Japan
This paper provides the theoretical results of the competition between MBA schools and universities. 1) It is thought that admission is decided at a professional university, etc., without observing the research results o...
Evaluation of Internal Audit and Control System as a Prerequisite for Qualitative External Audit Report
The quality of the audit report in corporate organization around the world and Nigeria has been of great concern considering the contribution of internal auditors as the overseer of daily accounting entries in an organiz...
Determining Company Value in the Manufacturing Sector in Indonesia
The purpose of the research is managerial ownership, capital structure, company growth, liquidity, and profitability on the value of manufacturing company listed at Indonesia Stock Exchange (IDX).This type of research in...
Analysis of Cutback Management Strategy in Financial Sustainability in the Public Sector in Indonesia
There are many literature reviews that write about the causes and expected consequences of an environmental, social, and economic crisis. It should be remembered that the role of the public sector is critical to overcomi...
An Evaluation of the Effectiveness of Digital Financial Service (DFS) in Promoting Financial Inclusion (FI) among Low-Income Households
Financial inclusion, characterized by access and usage of formal financial services, is a critical driver of economic development and poverty reduction. In Nigeria, a country with a large population of unbanked and under...