Is communication clarity from fiscal authority useful? Evidence from an emerging economy

This study relates to the literature on the communication and clarity of the policymakers. The novelty concerns the investigation of the effect of the communication and clarity of the fiscal authority on market expectations on public debt. The article addresses empirical evidence, based on the Brazilian experience, regarding the idea that communication is essential for the coordination between the policymaker and the market participants in order to lead expectations. The findings suggest that the communications from the Brazilian National Treasury concerning fiscal policy represent an important tool to improve the effects of the management of the public debt on market expectations regarding public debt.