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
Public Spending
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
From Data to Action: Learn How Latin American and Caribbean Governments Are Pursuing Better Governance
Latin America and the Caribbean are at a crossroads of environmental sustainability and inclusive development - and public governance plays a critical role in a fair green transition, especially given existing inequalities, limited fiscal capacity, and deteriorating public trust. How are public administrations in our region performing in these and other crucial areas for our … [Read more...] about From Data to Action: Learn How Latin American and Caribbean Governments Are Pursuing Better Governance
Racial Equity Budgeting: A Powerful Tool to Reduce Inequalities
Public interest in policies promoting racial equity is growing worldwide, especially in Latin America and the Caribbean (LAC), a region known for large income and racial inequalities. Afro descendants are one of the largest population groups in LAC, representing between 20 and 30 percent of the population and approximately half of the region's poor. They earn wages that are … [Read more...] about Racial Equity Budgeting: A Powerful Tool to Reduce Inequalities
How Do Inflation Shocks Affect Public Debt Dynamics?
The COVID-19 pandemic had a very large impact on government finances. As governments saw their revenues reduced and their expenditures increased to cope with the health and social emergencies, the public debt rapidly mounted. By the end of 2020, the debt-to-GDP ratios had increased by 10 percentage points (pp) compared to pre pandemic levels in the average emerging … [Read more...] about How Do Inflation Shocks Affect Public Debt Dynamics?