There is a widespread belief that fiscal rules hinder public investment. The reasoning is straightforward: to adhere to these rules, governments often must reduce spending, particularly on infrastructure projects, which are not deemed essential in the short term. But is that really the case? New evidence from Europe, emerging markets and Latin America shows otherwise. … [Read more...] about Unveiling the Truth: How Sticking to Fiscal Rules Boosts Investment in Latin America
Oscar Valencia
Oscar Valencia is a Principal Economist in the IDB's Fiscal Division and head of the platform FISLAC – Fiscal Sustainability for Latin America and the Caribbean. Prior to joining the IDB, Oscar was the General Director of Macroeconomic Policy at the Colombian Ministry of Finance. He has served as technical secretary of the Independent Committee for Fiscal Rule in Colombia and as a member of several boards of directors in Colombian organizations, including Colpensiones (defined pension system), Coljuegos (gambling regulator) as well as an Interim General Director of Fogafin (guarantee fund of financial institutions). He also worked as a researcher at Colombia’s Central Bank and the Colombian National Planning Department. Previously, he also worked as a consultant in the IDB's Research Department. Oscar's research agenda focuses on fiscal policy and macroeconomics, mainly in emerging economies. He has published in different academic journals on topics related to macroeconomic policy. He holds a Ph.D. with Honors in Economics from the Toulouse School of Economics (TSE), a Master's in Mathematical Economics from the same university and a Bachelor's and Master's with Honors in Economics from the Universidad Nacional de Colombia.
How Developing Countries Reduce the Impact of Climate Vulnerability on Sovereign Risk
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
Leveraging AI to Transform Macroeconomic and Fiscal Policymaking in Latin America and the Caribbean
Macroeconomic and fiscal policy is at the brink of a transformative shift due to the integration of artificial intelligence (AI), which is poised to revolutionize fiscal governance and policy formulation in Latin America and the Caribbean (LAC). The technology’s potential to enhance the precision of economic forecasts, optimize budget allocations, and streamline tax … [Read more...] about Leveraging AI to Transform Macroeconomic and Fiscal Policymaking in Latin America and the Caribbean
First Year of FISLAC: Transforming Fiscal Sustainability in Latin America and the Caribbean
Amid the unprecedented challenges unleashed by the COVID-19 pandemic worldwide, Latin America and the Caribbean (LAC) faced a pressing need: have intelligent tools to anticipate and manage risks threatening the economic and fiscal stability of the region. In response to this need, FISLAC (Fiscal Sustainability for Latin American and Caribbean Countries) was born, an … [Read more...] about First Year of FISLAC: Transforming Fiscal Sustainability in Latin America and the Caribbean
New Index Helps Governments Design Better Escape Clauses to Bridge Fiscal Rigidity with Crisis Adaptability
In recent years, the global economic landscape has been marked by unprecedented upheavals, including the Global Financial Crisis, the disruptions caused by the COVID-19 pandemic, and, more recently, geopolitical tensions. These crises have tested the resilience of fiscal frameworks, highlighting the pressing need for greater adaptability to navigate unforeseen challenges … [Read more...] about New Index Helps Governments Design Better Escape Clauses to Bridge Fiscal Rigidity with Crisis Adaptability