With a long history of recurrent and costly debt crises, Latin American governments have long sought to find a way to curb the fiscal deficits that stoke the debt problem. Those efforts gathered steam over the course of the 2000s when numerous governments in the region began adopting fiscal rules, which seek to curb politicians' ability to increase spending under political and … [Read more...] about Fiscal Rules for a Debt-Plagued Region
Preserving Public Investment During Fiscal Adjustments
As COVID-19 struck in early 2020, governments across Latin America and the Caribbean moved decisively through transfers, credits and other means to shore up their economies and support families and firms. That swift governmental action did much to alleviate suffering. But in the midst of falling revenues, fiscal deficits increased substantially, rising on average from 3.4% of … [Read more...] about Preserving Public Investment During Fiscal Adjustments
A Post COVID-19 Fiscal Strategy for Latin America and the Caribbean
Even before the COVID-19 crisis, Latin America and the Caribbean faced stagnant growth. GDP, however, fell by 7.4% in 2020, and the region's public finances were hit hard. With tax collection dropping 25% (and bouncing back only partially), and spending rising by about 3.5% of GDP as governments sought to attend to health and preservation policies to save households, jobs, and … [Read more...] about A Post COVID-19 Fiscal Strategy for Latin America and the Caribbean
Human Mobility Map Shows that People Are Observing Social Distancing
In recent weeks, the governments of Latin America and the Caribbean have implemented a battery of measures to encourage social distancing and reduce the infection rate of the coronavirus. Although it is clear that human mobility has indeed dropped significantly, important questions persist. How much has mobility declined in the region? In what countries has it dropped the … [Read more...] about Human Mobility Map Shows that People Are Observing Social Distancing
Fiscal Policy in the Time of Coronavirus: Constraints and Policy Options for Latin American and Caribbean Countries
Latin America and the Caribbean is suffering a heavy blow as the novel coronavirus is spreading, governments are sending people home, and only a few businesses are allowed to operate. This happens against a grim backdrop of financial fragility, and a flight to quality assets in developed countries, with the resulting doubling of credit spreads in emerging markets since January … [Read more...] about Fiscal Policy in the Time of Coronavirus: Constraints and Policy Options for Latin American and Caribbean Countries