How Much Room Does Latin America and the Caribbean Have for Implementing Counter-Cyclical Fiscal Policies?

Latin America's government debt has exhibited a clear downward trend since 2003. While this has been partly due to rapidly increasing commodity prices, more sustainable fiscal policies have also been a contributing factor. In effect, in a significant break with the past, cyclically adjusted government balances have raised (fallen) in response to increases (reductions) in debt levels. However, Latin governments have continued to under?save in good times and therefore fiscal policy has remained pro-cyclical, thus weakening the ability to protect the poor and maintain infrastructure investments during bad times. Financing and institutional constraints to more counter?cyclical fiscal policies still remain in most countries. They are lowest in Chile, followed by Brazil and Colombia, and highest in Ecuador and Venezuela. Looking forward, long?term sustainability considerations cannot be ignored as decisions are made regarding the size, composition and targeting of fiscal stimulus packages.

Bibliographic Details

Main Authors:	Calderón, Cesar, Fajnzylber, Pablo
Format:	Brief biblioteca
Language:	English
Published:	World Bank, Washington, DC 2009-04
Subjects:	ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO FUNDS, ADJUSTMENT PROGRAMS, ARBITRAGE, BANK POLICY, BARRIER, BASIS POINTS, BOND, BOND MARKETS, BORROWING COSTS, BUDGETARY INSTITUTIONS, BUSINESS CYCLE, BUSINESS CYCLES, CAPITAL FLOWS, CAPITAL INFLOWS, CENTRAL BANKS, COMMODITY, COMMODITY PRICES, CREDIT CONSTRAINTS, CREDIT LINE, CREDIT MARKETS, CREDITWORTHINESS, CURRENCY, CURRENT ACCOUNT, CURRENT ACCOUNT SURPLUSES, DEBT BURDEN, DEBT LEVELS, DEBT MANAGEMENT, DEBT MARKETS, DEBT SUSTAINABILITY, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DISCRETIONARY MEASURES, DISCRETIONARY POLICY, DOMESTIC MARKET, ECONOMIC ACTIVITY, ECONOMIC FLUCTUATIONS, ECONOMIC SLOWDOWN, EMERGING MARKET, EMERGING MARKET ECONOMIES, EXISTING DEBT, EXPENDITURE, EXPENDITURES, EXPORTERS, EXTERNAL BORROWING, EXTERNAL CAPITAL, EXTERNAL FINANCING, FINANCIAL BURDEN, FINANCIAL CRISIS, FINANCIAL DEPTH, FINANCIAL POLICY, FINANCING COSTS, FISCAL ADJUSTMENT, FISCAL ADJUSTMENTS, FISCAL BALANCES, FISCAL CONSOLIDATION, FISCAL CONTRACTION, FISCAL DISCIPLINE, FISCAL EXPANSIONS, FISCAL POLICIES, FISCAL POLICY, FISCAL RULES, FISCAL STIMULUS, FISCAL SUSTAINABILITY, GOVERNMENT DEBT, GOVERNMENT EXPENDITURES, GOVERNMENT REVENUES, GOVERNMENT SOLVENCY, INCOME, INCOME TAXES, INDUSTRIAL COUNTRIES, INFRASTRUCTURE INVESTMENTS, INSTITUTIONAL BARRIERS, INSTITUTIONAL CONSTRAINTS, INSTRUMENT, INTEREST PAYMENTS, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL ECONOMICS, INTERNATIONAL FINANCE, INTERNATIONAL FINANCIAL MARKETS, INTERNATIONAL MONETARY FUND, INVESTMENT PROJECTS, LIMITED ACCESS, LIQUIDITY, LIQUIDITY CONSTRAINTS, LOCAL CURRENCY, LONG TERM DEBT, MACROECONOMIC POLICIES, MACROECONOMIC POLICY, MACROECONOMIC STABILITY, MATURITY, MONETARY POLICY, OIL PRICES, OUTPUT, OUTPUT GAP, POLICY RESPONSES, PORTFOLIO, PRIMARY BALANCE, PRIMARY EXPENDITURE, PRIMARY SPENDING, PRIMARY SURPLUS, PRIVATE CREDIT, PUBLIC DEBT, PUBLIC DEFICITS, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC SECTOR, RESERVES, SAFETY NETS, SOCIAL PROTECTION, SOCIAL SAFETY NETS, SOCIAL SECURITY, SOLVENCY, SWAP, TAX, TAX COLLECTION, TOTAL DEBT, TRACK RECORD, VOLATILITY,
Online Access:	http://documents.worldbank.org/curated/en/2009/04/11954156/much-room-latin-america-caribbean-implementing-countercyclical-fiscal-policies-much-room-latin-america-caribbean-implementing-counter-cyclical-fiscal-policies http://hdl.handle.net/10986/10988
Tags:	Add Tag No Tags, Be the first to tag this record!