Volume : 2, Issue : 7, JUL 2016


Natalia Dus Poiatti, PhD


Governments in emerging countries have usually opted not to fully pass through increases in fuel prices to domestic consumers. On the one hand, fuel price interventions may lead to higher price stability in the short-run. On the other hand, they may negatively impact the trade balance, increase income inequality and signal a lack of commitment to fiscal budget control. The aim of this research project is to study the impacts of the Brazilian fuel price interventions on the macroeconomic uncertainty and sovereign risk.


fuel price gaps, sovereign risk, inflation, macroeconomic uncertainty.

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