Imagine living in a country where storms, floods, or droughts can cause catastrophic damage to the livelihoods of thousands or even millions of people, undermining a country’s ability to grow and maintain its macroeconomic stability. This is the challenge facing several developing countries all over the world, especially in Latin America and the Caribbean (LAC), where countries … [Read more...] about How Developing Countries Reduce the Impact of Climate Vulnerability on Sovereign Risk
How Fiscal Rules Can Reduce Sovereign Debt Default Risk
The COVID crisis has generated an unprecedented fiscal response as the total resources assigned to attend the pandemic globally has reached $11 trillion, according to the World Economic Forum. Latin America and the Caribbean (LAC) has not been an exception. Taken together, the announced measures in LAC amount, on average[1], to 8 percent of the region’s GDP as stated by the … [Read more...] about How Fiscal Rules Can Reduce Sovereign Debt Default Risk