Walking on a fence: Brazil’s public-sector debt

Abstract

Brazil is walking on a fence between sustainable and unsustainable public-debt dynamics. How it treads could affect not only its own economic prosperity but that of its neighbors, emerging markets in general, and U.S. financial institutions in particular. Relatively small improvements in Brazilian economic conditions and a continuation of that country’s recent fiscal improvements could push Brazil in the right direction, particularly if the dollar continues to depreciate.Debts, Public - Brazil ; Economic conditions - Brazil