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
Three years after the onset of the COVID-19 pandemic, countries in Latin America and the Caribbean (LAC) are still dealing with its economic consequences. Currently, one of the main points of concern is the excessive level of public indebtedness and the risk it represents to economic stability and economic growth. This year the IDB published its flagship study … [Read more...] about How to Prevent Debt from Hurting Economic Growth
Over the past two decades, a growing number of Latin American and Caribbean (LAC) countries began adopting fiscal rules to limit overspending influenced by election cycles, public pressure, and other political economy factors, helping the region strengthen its fiscal solvency and sustainability. However, in recent years the region has suffered several external shocks that … [Read more...] about Are Latin American and Caribbean Countries Complying with Their Fiscal Rules?
Fiscal policy has a key role in reducing tobacco use. According to the WHO FCTC, raising taxes has been one of the most effective measures by far. This is because an increase in taxes, directly affects the price, which in turn makes tobacco products less affordable. Pricier tobacco products have the positive effect of reducing tobacco initiation, prevalence, and consumption. … [Read more...] about Four Strategies to Make Tobacco Taxation an Effective Tool to Reduce Consumption
Increasing disaster risks in developing countries call for strategic planning and investments in resilient and low-carbon infrastructure. The tsunami that caused extensive destruction and loss of life in Tonga in January 2022 stressed the vulnerability of developing countries, especially small island developing states, to disasters triggered by natural hazards, such as … [Read more...] about Aligning Public Investments with Sustainable and Climate Goals