Fiscal Rules and Economic Size in Latin America and the Caribbean

Fiscal Rules and Economic Size in Latin America and the Caribbean
Author :
Publisher : World Bank Publications
Total Pages : 198
Release :
ISBN-10 : 9781464815812
ISBN-13 : 146481581X
Rating : 4/5 (12 Downloads)

Book Synopsis Fiscal Rules and Economic Size in Latin America and the Caribbean by : Fernando Blanco

Download or read book Fiscal Rules and Economic Size in Latin America and the Caribbean written by Fernando Blanco and published by World Bank Publications. This book was released on 2020-10-10 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following the collapse of commodity prices in Latin America and the Caribbean (LAC) in 2014-15, many countries in the region were unable to cushion the impact of the shock in order to experience a more gradual adjustment, to a large extent because they had not built adequate fiscal buffers during the commodities’ windfall from 2010-14. Many LAC countries entered 2020 and the COVID-19 crisis in an even more difficult position, with rising debt and limited fiscal space to smooth the negative impacts of the pandemic and adequately support their economies. Fiscal policy in most LAC countries has been procyclical. Public expenditure and debt levels have expanded in good times and contracted in severe downswings due to insufficient fiscal buffers, making crises deeper. Fiscal rules represent a promising policy option for these and other economies. If well-designed and implemented, they can help build buffers during periods of strong economic performance that will be available during rainy days to smooth economic shocks. This book—which was prepared before the COVID-19 crisis—reviews the performance and implementation of different fiscal rules in the region and world. It provides analytical and practical criteria for policy makers for the design, establishment, and feasible implementation of fiscal rules based on each country's business cycle features, external characteristics, type of shocks faced, initial fiscal conditions, technical and institutional capacities, and political context. While establishing new fiscal rules would not help to attenuate the immediate effects of this pandemic crisis, higher debt levels in the aftermath of COVID-19 will demand rebuilding better and stronger institutional frameworks of fiscal policy in LAC and emerging economies globally. Having stronger fiscal mechanisms that include fiscal rules can help countries prepare for the next crisis and should be on the front burner for policy makers in coming years. The findings and lessons discussed apply to economies of different sizes, with some differences under certain scenarios in terms of the technical design and criteria needed for implementation. In this book, policy makers will find that fiscal rules, if tailored to country characteristics, can work and be an essential fiscal tool for larger and particularly smaller economies.


Fiscal Rules and Economic Size in Latin America and the Caribbean Related Books

Fiscal Rules and Economic Size in Latin America and the Caribbean
Language: en
Pages: 198
Authors: Fernando Blanco
Categories: Business & Economics
Type: BOOK - Published: 2020-10-10 - Publisher: World Bank Publications

DOWNLOAD EBOOK

Following the collapse of commodity prices in Latin America and the Caribbean (LAC) in 2014-15, many countries in the region were unable to cushion the impact o
Can Fiscal Rules Help Reduce Macroeconomic Volatility in the Latin America and Caribbean Region?
Language: en
Pages: 28
Authors: Guillermo Perry
Categories: Business cycles
Type: BOOK - Published: 2003 - Publisher: World Bank Publications

DOWNLOAD EBOOK

The debate on fiscal policy in Europe centers on how to let automatic stabilizers work while achieving fiscal consolidation. There is significant agreement on t
Riding the Roller Coaster
Language: en
Pages: 47
Authors: Pablo Lopez Murphy
Categories: Business & Economics
Type: BOOK - Published: 2010-11-01 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

This paper analyzes recent fiscal policies of nonrenewable resource exporting countries in Latin America and the Caribbean in the context of sharp swings in res
Fiscal Panorama of Latin America and the Caribbean 2018
Language: en
Pages: 129
Authors: Economic Commission for Latin America and the Caribbean
Categories: Political Science
Type: BOOK - Published: 2018-04-11 - Publisher: United Nations

DOWNLOAD EBOOK

This edition of Fiscal Panorama of Latin America and the Caribbean coincides with an important milestone: the thirtieth anniversary of the Regional Seminar on F
Better Spending for Better Lives
Language: en
Pages: 453
Authors: Alejandro Izquierdo
Categories: Business & Economics
Type: BOOK - Published: 2018-09-16 - Publisher: Inter-American Development Bank

DOWNLOAD EBOOK

How can this puzzle of larger demands and fiscal strengthening be solved? This edition of the development in the Americas (DIA) report focuses precisely on this