Brazilian fiscal policy post-2008: Spending boosts economy, tax cuts fall short.
The Brazilian government used different fiscal policies after the 2008 crisis to boost the economy. They found that government spending and public investment were the most effective tools. Lowering excise taxes on manufactured durable goods also helped, but only in the short term. However, tax exemptions on durable goods consumption didn't work well because they only targeted one sector, causing a decrease in non-durable goods consumption. Overall, spending-based measures were more successful in boosting the economy than revenue-based ones.