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
Possible macro-fiscal consequences of COVID-19 in Latin America
The pandemic does not come to the region in good time, the little dynamism of growth in recent years generates uncertainty of the outlook for the future. For 2020, the consensus among analysts expects a drop in output in Latin America and the Caribbean between -2% and -6%, which comparative terms would be deeper contractions than the debt crisis of the eighties (-2.4%) and the … [Read more...] about Possible macro-fiscal consequences of COVID-19 in Latin America