Public Debt Path and Long-Memory in Fiscal Data: An Analysis for a Developing Country

This article contributed to the literature on fiscal rules as we found evidence of expected inflationary effects a result lower cyclicality, even after an appropriate treatment for long-memory in data, thereby contrast most part related published studies, which have adopted conventional unit root tests. We used Brazil our case study, represents relevant example developing country nowadays. then pro-cyclical rule Brazil, mainly 2014, so that it diverged from public debt sustainability principle developed by Bohn (1995; 2005).