Download or read book Fiscal Policy Challenges for Latin America During the Next Stages of the Pandemic The Need for a Fiscal Pact written by International Monetary Fund and published by International Monetary Fund. This book was released on 2021-03-18 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fiscal policy response to the COVID-19 shock in most LAC countries was much larger than during the GFC, suggesting fiscal space was not as tight as expected. We argue that it is feasible and desirable, though not without risks, to embark in a more gradual consolidation path than currently envisaged by several countries in the region. Avoiding an early withdrawal of support in 2021 and 2022 is important given that countries are still facing high rates of contagion and deaths, vaccination will take place very slowly, the economic recovery is partial, uncertain and not strong enough to help those most affected by the twin public health and economic crisis. At the center of this discussion is our conviction that fiscal space is not set in stone and it is endogenous to the medium-term targets and commitments undertaken by governments and congresses throughout the region. Also, revisions to fiscal responsibility frameworks should help anchor fiscal sustainability, as well as improve their effectiveness and flexibility. In this context, low-for-long interest rates and easy market access is generating a situation that, in spite of higher debt levels, interest cost on public debt will remain contained in the foreseeable future. Especially if, as argued in this paper, a more gradual fiscal consolidation path is accompanied with stronger commitments and institutional frameworks that ensure debt is put on a credible downward trajectory once the pandemic is under control. Catalyzing these changes, as well as initiating the debate to design other fiscal reforms to strengthen social protection and increase the progressivity of public finances, would require a broad social consensus and political cohesion around several crucial dimensions of public finances: a fiscal pact. On the other hand, if this agenda is neglected the continuation of low growth, social discontent, and political polarization could drive Latin America towards a very dangerous path of institutional and economic decay.
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.
Download or read book Emerging from the Pandemic Tunnel with Faster Growth and Greater Equity A Strategy for a New Social Compact in Latin America and the Caribbean written by Alejandro Izquierdo and published by Inter-American Development Bank. This book was released on 2020-07-30 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: While the pandemic lasts, Latin America and the Caribbean (LAC) will go through a tunnel full of uncertainty. It is not known especially how long it is: how long until therapies or a vaccine emerge, or until best practices are known to control the pandemic to live with a virus of unknown lethality. This note describes policy options on how countries can expand their possibilities to meet the economic challenges of the crisis, with an emphasis on growth and equity. These options are based on the assumption that the fiscal situation of the region and its access to sovereign credit markets are much more restricted than in previous crises, which forces to think about policy reforms beyond fiscal ones to accelerate the Economic recovery. The options are ambitious, but the ambition meets the need. This document is part of a series of 3 IDB monographs on public policies in the context of COVID-19. The other documents can be consulted at the following links: Public Policy to Tackle COVID-19: Recommendations for Latin America and the Caribbean: https://publications.iadb.org/en/public-policy-to-tackle-covid-19-recommendations-for--latin-america-and-the-caribbean From Lockdown to Reopening: Strategic Considerations for the Resumption of Activities in Latin America and the Caribbean within the framework of Covid-19 https://publications.iadb.org/en/from-lockdown-to-reopening-strategic-considerations-for-the-resumption-of-activities-in-latin-america-and-the-caribbean-within-the-framework-of-covid-19
Download or read book Fiscal Panorama of Latin America and the Caribbean 2021 written by United Nations and published by UN. This book was released on 2023-11-30 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2021, Latin America and the Caribbean faces an economic and social context that will remain complex and uncertain. The coronavirus disease (COVID-19) pandemic continues to impact the region, with a fresh wave of cases that has led to the implementation of new public health measures to curb the spread of the virus. Vaccination campaigns, which are a priority, have been hampered by unequal access to vaccines globally and challenges in vaccine production and distribution. In this complex and uncertain context, the Fiscal Panorama of Latin America and the Caribbean, 2021 analyses the challenges for fiscal policy in the region as it continues to tackle the emergency and bring about a transformative post-pandemic recovery. Maintaining an expansionary fiscal policy will be key, and will require the support of international cooperation through development financing. The report also reflects on the need to promote tax policies that expand fiscal space, improve income distribution and maintain the sustainability of spending trajectories. Lastly, it examines progress in the mainstreaming of a gender perspective in fiscal policies in the region.
Download or read book Challenges to Fiscal Adjustment in Latin America written by Organisation for Economic Co-operation and Development and published by OECD. This book was released on 2006-02-23 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite considerable progress made by Latin America’s biggest economies in putting their finances in order, numerous challenges remain. Public spending needs to incorporate more flexibility, ageing populations and social demands threaten future pressures on expenditure, and social and infrastructure spending need to be more cost-effective. At the same time, tax bases need to broaden to reduce reliance on distortionary taxes on financial transactions and enterprise turnover, and overall tax administration must be improved. Finally and foremost, the fiscal authorities need to keep public debt at sustainable levels, paving the way for faster, more resilient growth. This volume discusses progress made to date in Argentina, Brazil, Chile and Mexico, and points out the road ahead. It provides an overview of trends and highlights the diversity of fiscal adjustment processes in Latin American countries. It also describes the financial market perspective and role of sovereign debt ratings. The chapter on Argentina debunks the view that fiscal management in the 1990s was irresponsible, arguing instead that the financial crisis was caused by a confluence of costly pension reforms, Brady debt restructuring and the recognition of fiscal “skeletons” in the closet. The chapter on Brazil makes a case for a more entrenched culture of fiscal austerity to make the current achievements sustainable. The Chile chapter describes the role of political cohesiveness following the return of democracy in driving the economy to fiscal rectitude. Finally, the chapter on Mexico discusses different scenarios for debt dynamics and the country’s efforts to contain expenditure pressures.
Download or read book Fiscal Panorama of Latin America and the Caribbean 2021 Fiscal Policy Challenges for Transformative Recovery Post COVID 19 written by NU. CEPAL. and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreword .-- Chapter I. Challenges of maintaining expansionary fiscal policy to drive transformative recovery post-COVID-19 .-- Chapter II. Net wealth taxes in Latin America .-- Chapter III. Gender-responsive fiscal policy in Latin American countries .-- Tables.
Download or read book The Aftermath of the Crisis written by Ernesto Talvi and published by Inter-American Development Bank. This book was released on 2010-03-22 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the aftermath of the direst global crisis in recent times, Latin America and the Caribbean have shown remarkable resilience. The aim of this report is threefold: first, to understand the sources of this resilience, identifying the role played by unprecedented international financial support on the one hand, and the strength of domestic macroeconomic fundamentals on the other; second, to highlight the policy lessons that emerge from this analysis both for the region and the international financial community; and finally, to identify critical macroeconomic policy challenges for the region.
Download or read book Excerpt Latin America written by Ms.Dora M Iakova and published by International Monetary Fund. This book was released on 2014-12-15 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is an excerpt of Latin America: New Challenges to Grwoth and Stability.
Download or read book Fiscal Policy and Economic Reconstruction in Latin America written by International Monetary Fund and published by International Monetary Fund. This book was released on 1989-11-02 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper surveys the fiscal landscape of Latin America. It analyzes external and domestic factors that over the years led to the deterioration of the fiscal accounts. It also discusses difficulties that are encountered in pursuing a sound fiscal policy under inflationary conditions. Issues such as the connection between external debt and fiscal policy and the role of public investment are also discussed. General guidelines are provided for a fiscal policy for the economic reconstruction of Latin America.
Download or read book Fiscal Panorama of Latin America and the Caribbean 2022 Fiscal Policy Challenges for Sustainable and Inclusive Development written by NU. CEPAL. and published by . This book was released on with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreword .-- Chapter I. Public finance trends in Latin America and the Caribbean in 2021 .-- Chapter II. The future of fiscal rules in Latin America and the Caribbean: inputs for their reformulation following the impact of the coronavirus disease (COVID-19) pandemic .-- Chapter III. Fiscal frameworks for the exploitation of non-renewable natural resources in Latin America and the Caribbean.
Download or read book Fiscal Policy in Latin America over the Cycle written by Mr.Alexander Klemm and published by International Monetary Fund. This book was released on 2014-04-16 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides an analysis of the cyclical stance of fiscal policy in Latin America. Its contributions include developing a new measure of the cyclicality of fiscal policy, careful analysis of the statistical significance of results, and accounting for the effect of commodity prices on fiscal balances. The new cyclicality measure takes into account both discretionary policy action and automatic stabilizers, but excludes additional revenues that are due to applying an unchanged average tax rate to nominal GDP in excess of potential. The paper finds that fiscal policy has been procyclical on average in Latin America, but counter or acyclical in advanced economies. Country-specific results are mostly insignificant, except in a few cases where policy is clearly procyclical. For some countries (Brazil, Chile, Colombia, El Salvador, and Mexico), there is evidence of a recent move toward more countercyclical policies.
Download or read book Fiscal Panorama of Latin America and the Caribbean 2022 written by United Nations and published by UN. This book was released on 2023-11-17 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The region is facing a complex economic situation, marked by slowing growth, rising inflation, interest rate hikes and volatility in international markets. This context puts pressure on public finances, compounded by increasing demands for social welfare, investment and environmental sustainability, which pose fiscal policy challenges. The Fiscal Panorama of Latin America and the Caribbean, 2022 proposes a fiscal policy design that would help to drive sustainable development, by strengthening tax collection and making tax structures more progressive, and giving a strategic orientation to public spending to turn it into an instrument of development. The report analyses the fiscal trends observed in 2021, which included an upturn in tax receipts and a slowdown in public spending that resulted in smaller fiscal deficits. It also examines fiscal rules and the mechanisms used to ease them during the pandemic, proposing a rethink of these rules aimed at pro-growth fiscal policy. Lastly, it studies the fiscal frameworks applied to hydrocarbon production and mining with a view to maximizing their contribution to the implementation of the 2030 Agenda for Sustainable Development.
Download or read book Fiscal Policy in Latin America written by Oya Celasun and published by . This book was released on 2015 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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?
Download or read book Managing Economic Volatility in Latin America written by Mr.R. Gelos and published by International Monetary Fund. This book was released on 2014-03-27 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: How has Latin America coped with external shocks and economic vulnerabilities in the aftermath of the global financial crisis? Managing Economic Volatility in Latin America looks at how the region has fared in recent years in an environment of uncertainty. It presents a collection of novel contributions on capital flows, terms of trade, and macroeconomic policy in Latin America. The rigorous expert analysis offers an up-to-date guide to many of the key economic policy questions in the region. Chapters focus on important analytical issues, including assessing reserves adequacy and current account levels. The roles of macroeconomic policies and exchange rates regimes in coping with large capital inflows are examined, as well as the effectiveness of both monetary policy and fiscal policy in dealing with economic challenges in the region.
Download or read book The Fiscal Covenant written by United Nations. Economic Commission for Latin America and the Caribbean and published by Santiago, Chile : United Nations, Economic Commission for Latin America and the Caribbean. This book was released on 1998 with total page 312 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book FISCAL PANORAMA OF LATIN AMERICA AND THE CARIBBEAN 2024 written by UNITED NATIONS ECONOMIC COMMISSION FOR LATIN AMERICA AND THE CARIBBEAN. and published by . This book was released on 2024 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Rigidities and Fiscal Space in Latin America written by Oscar Centrángolo and published by United Nations Publications. This book was released on 2010 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper begins with a conceptual overview and comparative analysis of the cases studied in Latin America. First, there is an analysis and review of the theoretical justifications and arguments used in the political debate which underlies the emergence and persistence of rigidities in countries of the region, following a typology which allows for the classification of the reasons for rigidities. Based on the case studies the potential effects of fiscal rigidities on public budgets and their impact on fiscal-policy management are evaluated. The ultimate goal of this comparative study is to provide a set of recommendations to help guide future improvements in the management of public budgets.
