This paper analyzes the institutional and political conditions of fiscal adjustment in a comparative perspective. Focusing mainly on Brazil, it also examines other countries, such as the United States, Sweden and the Netherlands which faced similar fiscal concerns in the 1980s. Emphasizing the role of legal restrictions over public indebtedness and deficit, the paper shows that they are not sufficient to reduce deficit or high levels of financial debt. In order to be enforced, these restrictions depend on political conditions, such as government cohesion.
Political institutions; Legal restrictions; Government cohesion; Fiscal adjustment; Brazilian Senate
