Fiscal Rules And Economic Size In Latin America And The Caribbean

Author : Fernando Blanco,Pablo Saavedra,Friederike Koehler-Geib,Emilia Skrok
Publisher : World Bank Publications
Page : 198 pages
File Size : 53,8 Mb
Release : 2020-10-10
Category : Business & Economics
ISBN : 9781464815812

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Fiscal Rules and Economic Size in Latin America and the Caribbean by Fernando Blanco,Pablo Saavedra,Friederike Koehler-Geib,Emilia Skrok Pdf

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.

Author : Guillermo Perry
Publisher : World Bank Publications
Page : 28 pages
File Size : 46,7 Mb
Release : 2003
Category : Business cycles
ISBN : 8210379456XXX

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Can Fiscal Rules Help Reduce Macroeconomic Volatility in the Latin America and Caribbean Region? by Guillermo Perry Pdf

The debate on fiscal policy in Europe centers on how to let automatic stabilizers work while achieving fiscal consolidation. There is significant agreement on the importance of using fiscal policy as a counter-cyclical instrument, as monetary policy can no longer play this role. In contrast, most of the discussion on fiscal policy in Latin America and the Carribean region (LAC) deals just on solvency issues, largely ignoring the effects of the economic cycle. This is surprising as LAC economies are much more volatile than their European counterparts and have been generally applying pro-cyclical fiscal policies that exacerbate volatility. Some analysts and policymakers appear to think that counter-cyclical fiscal policies are a luxury that only industrial countries can indulge in or, at least, that LAC countries (with the exception of Chile) that have successfully put in place a counter-cyclical fiscal policy need to deal first with pressing adjustment and solvency issues before they attempt to reduce the highly pro-cyclical character of their fiscal policies. The author argues that this is a major mistake because the costs of pro-cyclical fiscal policies in LAC are huge in growth and welfare terms, especially for the poor, and because pro-cyclical policies and rules tend to develop a deficit bias, thus ending up being nonsustainable and noncredible. Perry illustrates both propositions. He then examines the causes of the pro-cyclicality of fiscal policies in LAC and discusses how well-designed fiscal rules may help to deal with the political economy and credibility factors behind pro-cyclicality. He also examines conflicts between flexibility and credibility in rules, showing how a good design can both facilitate the operation of automatic stabilizers while at the same time supporting solvency goals and enhancing credibility. Perry evaluates the experience with different fiscal rules and institutions in LAC to see the extent they have helped or can help to achieve the twin goals of avoiding deficit and pro-cyclical biases.

Author : Economic Commission for Latin America and the Caribbean
Publisher : United Nations
Page : 129 pages
File Size : 49,6 Mb
Release : 2018-04-11
Category : Political Science
ISBN : 9789210586214

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Fiscal Panorama of Latin America and the Caribbean 2018 by Economic Commission for Latin America and the Caribbean Pdf

This edition of Fiscal Panorama of Latin America and the Caribbean coincides with an important milestone: the thirtieth anniversary of the Regional Seminar on Fiscal Policy organized by the Economic Commission for Latin America and the Caribbean (ECLAC). Over the past 30 years, this seminar has become a key fixture on the agenda of fiscal policy events in the region.Throughout these three decades, the successive editions of the seminar have served as a forum for national authorities, tax experts and officials from international organizations to discuss the performance, challenges and opportunities of fiscal policy,and it has enhanced policy design and management in the individual countries.

Author : Pablo Lopez Murphy,Mr.Rolando Ossowski,Mr.Mauricio Villafuerte
Publisher : International Monetary Fund
Page : 47 pages
File Size : 44,6 Mb
Release : 2010-11-01
Category : Business & Economics
ISBN : 9781455209514

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Riding the Roller Coaster by Pablo Lopez Murphy,Mr.Rolando Ossowski,Mr.Mauricio Villafuerte Pdf

This paper analyzes recent fiscal policies of nonrenewable resource exporting countries in Latin America and the Caribbean in the context of sharp swings in resource prices. Fiscal policies were predominantly procyclical during the boom period 2003-08 but to significantly differing degrees within the sample. Countries that pursued more conservative fiscal policies during the boom were then able to implement countercyclical fiscal policies during the downturn; moreover, they reduced or maintained their fiscal vulnerability to resource shocks, while their long-term fiscal sustainability positions improved or were broadly unchanged. However, these dimensions of fiscal policy did not seem to be linked to fiscal rules or resource funds, as countries with such institutions displayed a broad range of fiscal responses to the recent cycle.

Author : Alejandro Izquierdo,Carola Pessino,Guillermo Vuletin,Inter American Development Bank
Publisher : Inter-American Development Bank
Page : 453 pages
File Size : 47,6 Mb
Release : 2018-09-16
Category : Business & Economics
ISBN : 9781597823319

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Better Spending for Better Lives by Alejandro Izquierdo,Carola Pessino,Guillermo Vuletin,Inter American Development Bank Pdf

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 question. The book suggests that the answer is about fiscal efficiency and smart spending rather than the standard solution of across-the-board spending cuts to achieve fiscal sustainability— sometimes at great cost for society. It is about doing more with less. · Analysis of government spending in Latin America and the Caribbean reveals widespread waste and inefficiencies that could be as large as 4.4 percent of the region’s GDP, showing there is ample room to improve basic services without necessarily spending more resources. · The publication argues against across-the-board cuts. It looks at whether countries spend too much or too little on different priorities, whether they invest enough to ensure a better future, and whether those expenditures make inequality better or worse. · Along with the diagnosis, the report offers several policy recommendations on how to improve the efficiency of government spending.

Author : Guillermo E. Perry
Publisher : Unknown
Page : 24 pages
File Size : 44,7 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1290704148

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Can Fiscal Rules Help Reduce Macroeconomic Volatility in the Latin America and Caribbean Region? by Guillermo E. Perry Pdf

The debate on fiscal policy in Europe centers on how to let automatic stabilizers work while achieving fiscal consolidation. There is significant agreement on the importance of using fiscal policy as a counter-cyclical instrument, as monetary policy can no longer play this role. In contrast, most of the discussion on fiscal policy in Latin America and the Caribbean region (LAC) deals just on solvency issues, largely ignoring the effects of the economic cycle. This is surprising as LAC economies are much more volatile than their European counterparts and have been generally applying pro-cyclical fiscal policies that exacerbate volatility. Some analysts and policymakers appear to think that counter-cyclical fiscal policies are a luxury that only industrial countries can indulge in or, at least, that LAC countries (with the exception of Chile) that have successfully put in place a counter-cyclical fiscal policy need to deal first with pressing adjustment and solvency issues before they attempt to reduce the highly pro-cyclical character of their fiscal policies.Perry argues that this is a major mistake because the costs of pro-cyclical fiscal policies in LAC are huge in growth and welfare terms, especially for the poor, and because pro-cyclical policies and rules tend to develop a deficit bias, thus ending up being nonsustainable and noncredible. Perry illustrates both propositions. He then examines the causes of the pro-cyclicality of fiscal policies in LAC and discusses how well-designed fiscal rules may help to deal with the political economy and credibility factors behind pro-cyclicality. He also examines conflicts between flexibility and credibility in rules, showing how a good design can both facilitate the operation of automatic stabilizers while at the same time supporting solvency goals and enhancing credibility. Perry evaluates the experience with different fiscal rules and institutions in LAC to see the extent they have helped or can help to achieve the twin goals of avoiding deficit and pro-cyclical biases. This paper is a product of the Office of the Chief Economist, Latin America and the Caribbean Region.

Author : Santiago Herrera,Eduardo Olaberria
Publisher : World Bank Publications
Page : 73 pages
File Size : 45,5 Mb
Release : 2020-04-23
Category : Business & Economics
ISBN : 9781464815201

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Budget Rigidity in Latin America and the Caribbean by Santiago Herrera,Eduardo Olaberria Pdf

Policy makers in Latin America and the Caribbean (LAC) often complain that poor fiscal performance in their countries is a result of a high degree of spending rigidity. Despite being a common complaint, the issue has remained largely ignored by the literature because of the lack of adequate measures of rigidity that allow cross-country and time series comparability. This report helps close this gap by introducing a new measure of spending rigidities that can be easily applied to multiple countries. It focuses on the categories of spending that are naturally inflexible--wages, pensions, transfers to subnational governments, and debt service--and separates them into two components: structural and nonstructural. The structural component is determined by economic, demographic, and institutional fundamentals. The nonstructural component is determined by short-run transitory factors associated with business and political cycles. The degree of rigidity of spending is then proxied by the ratio of structural spending to total spending, with a higher value indicating that spending is driven mostly by factors out of the policy makers’ control. This concept of rigidity was applied to 120 countries for the years 2000†“17 and produced several interesting results: • Advanced economies and developing countries in other regions have higher levels of rigidity than countries in LAC. • The sources of rigidity vary by country. • Higher rigidity is associated with higher spending levels, higher tax rates, higher public debt, and lower efficiency of public spending. • Rigidity has pervasive effects on fiscal sustainability, increasing the country’s financing needs and reducing the probability of the country starting a fiscal adjustment. Given these pervasive effects of spending rigidity, the report concludes by discussing several policies to contain the sources of rigidity in the long term, ranging from the importance of deepening the pension reform process to the need of establishing strong fiscal institutions promoting medium-term fiscal planning.

Author : OECD
Publisher : OECD Publishing
Page : 200 pages
File Size : 52,7 Mb
Release : 2020-03-18
Category : Electronic
ISBN : 9789264455467

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Government at a Glance: Latin America and the Caribbean 2020 by OECD Pdf

This third edition of Government at a Glance Latin America and the Caribbean provides the latest available evidence on public administrations and their performance in the LAC region and compares it to OECD countries. This publication includes indicators on public finances and economics, public employment, centres of government, regulatory governance, open government data, public sector integrity, public procurement and for the first time core government results (e.g. trust, inequality reduction).

Author : Santiago Acosta-Ormaechea,Samuel Pienknagura,Carlo Pizzinelli
Publisher : International Monetary Fund
Page : 41 pages
File Size : 42,7 Mb
Release : 2022-01-21
Category : Electronic
ISBN : 9781616358297

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Tax Policy for Inclusive Growth in Latin America and the Caribbean by Santiago Acosta-Ormaechea,Samuel Pienknagura,Carlo Pizzinelli Pdf

Tax Policy for Inclusive Growth in Latin America and the Caribbean

Author : OECD
Publisher : OECD Publishing
Page : 192 pages
File Size : 55,5 Mb
Release : 2016-12-06
Category : Electronic
ISBN : 9789264265554

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Government at a Glance: Latin America and the Caribbean 2017 by OECD Pdf

This second edition of Government at a Glance: Latin America and the Caribbean provides the latest available data on public administrations in the LAC region and compares it to OECD countries.

Author : Mr.Yan Carriere-Swallow,Mr.Antonio David,Mr.Daniel Leigh
Publisher : International Monetary Fund
Page : 42 pages
File Size : 49,6 Mb
Release : 2018-06-13
Category : Business & Economics
ISBN : 9781484361696

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The Macroeconomic Effects of Fiscal Consolidation in Emerging Economies: Evidence from Latin America by Mr.Yan Carriere-Swallow,Mr.Antonio David,Mr.Daniel Leigh Pdf

We estimate the short-term effects of fiscal consolidation on economic activity in 14 countries in Latin America and the Caribbean. We examine contemporaneous policy documents to identify changes in fiscal policy motivated by a desire to reduce the budget deficit and not by responding to prospective economic conditions. Based on this narrative dataset, our estimates suggest that fiscal consolidation has contractionary effects on GDP, consistent with a multiplier of 0.9. We find these effects to be close to those in OECD countries based on a similarly constructed dataset (Devries and others, 2011). We also find similar estimation results for the two groups of economies for the effect of fiscal consolidation on the external current account balance, providing support for the twin deficits hypothesis.

Author : Mario Sanginés,Joan Oriol Prats Cabrera,Carlos Pimenta,Gustavo García Osío,Juan Pablo Martínez Guzman,Mario Marcel,Pedro Farias,Gustavo Crespi,Martin D. Chrisney,Ana Corbacho
Publisher : Inter-American Development Bank
Page : 198 pages
File Size : 43,6 Mb
Release : 2013-10-07
Category : Business & Economics
ISBN : 9781597821698

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The Fiscal Institutions of Tomorrow by Mario Sanginés,Joan Oriol Prats Cabrera,Carlos Pimenta,Gustavo García Osío,Juan Pablo Martínez Guzman,Mario Marcel,Pedro Farias,Gustavo Crespi,Martin D. Chrisney,Ana Corbacho Pdf

The Fiscal Institutions of Tomorrow, the first publication in the series Institutions for People, addresses issues of public management that are key to economic development in Latin America and the Caribbean. It presents the challenges that the countries in the region face to strengthen fiscal institutions with a view to the future and with policy recommendations. This publication serves as reference material for policymakers and economic analysts interested in studying the evolution of fiscal institutions in the region and identifying areas to improve governance.

Author : Oya Celasun,Francesco Grigoli,Ms.Keiko Honjo,Mr.Javier Kapsoli,Mr.Alexander Klemm,Mr.Bogdan Lissovolik,Jan Luksic,Ms.Marialuz Moreno Badia,Ms.Joana Pereira,Marcos Poplawski-Ribeiro,Baoping Shang,Ms.Yulia Ustyugova
Publisher : International Monetary Fund
Page : 37 pages
File Size : 47,9 Mb
Release : 2015-04-30
Category : Business & Economics
ISBN : 9781498304412

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Fiscal Policy in Latin America by Oya Celasun,Francesco Grigoli,Ms.Keiko Honjo,Mr.Javier Kapsoli,Mr.Alexander Klemm,Mr.Bogdan Lissovolik,Jan Luksic,Ms.Marialuz Moreno Badia,Ms.Joana Pereira,Marcos Poplawski-Ribeiro,Baoping Shang,Ms.Yulia Ustyugova Pdf

Latin America’s bold fiscal policy reaction to the global financial crisis was hailed as a sign that the region had finally overcome its procyclical fiscal past. However, most countries of the region have not yet rebuilt their fiscal space, despite buoyant commodity revenues and relatively strong growth in the aftermath of the crisis. Using the experience of Brazil, Chile, Colombia, Mexico, Peru, and Uruguay, this paper examines the lessons and legacies of the crisis by addressing the following questions, among others: How much did the 2009 fiscal stimulus help growth? What shortcomings were revealed in the fiscal policy frameworks? What institutional reforms are now needed to provide enduring anchors for fiscal policy? How much rebuilding of buffers is needed going forward?

Author : Mr.Antonio David,Mr.Daniel Leigh
Publisher : International Monetary Fund
Page : 67 pages
File Size : 51,7 Mb
Release : 2018-04-26
Category : Business & Economics
ISBN : 9781484352786

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A New Action-based Dataset of Fiscal Consolidation in Latin America and the Caribbean by Mr.Antonio David,Mr.Daniel Leigh Pdf

This paper presents a new database of fiscal consolidations for 14 Latin American and Caribbean economies during 1989-2016. We focus on discretionary changes in taxes and government spending primarily motivated by a desire to reduce the budget deficit and long-term fiscal health and not by a response to prospective economic conditions. To identify the motivation and budgetary impact of the fiscal policy changes, we examine contemporaneous policy documents, including Budgets, central bank reports, and IMF and OECD reports. The resulting series can be used to estimate the macroeconomic effects of fiscal consolidation for these economies

Author : Anonim
Publisher : Unknown
Page : 260 pages
File Size : 41,8 Mb
Release : 1983
Category : Caribbean Area
ISBN : UCSD:31822008491185

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Economic Survey of Latin America and the Caribbean by Anonim Pdf