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
Macroeconomics and Finance
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
Making Good Macro-Fiscal Forecasts for Medium-Term Fiscal Sustainability: Lessons from International Practice
A Medium-Term Fiscal Framework (MTFF) is an institutional framework designed to guide and inform the public about the achievement of multi-year fiscal policy objectives. It uses medium-term macro-fiscal projections and analyses national or subnational public finances. At the core of an MTFF is a medium-term economic and fiscal outlook report, which forecasts the key government … [Read more...] about Making Good Macro-Fiscal Forecasts for Medium-Term Fiscal Sustainability: Lessons from International Practice
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