By Mark Hallerberg Recently, there has been renewed interest in incorporating fiscal rules directly into constitutions. In 2012, the signatories of the so-called "Fiscal Compact" in Europe were expected to introduce a balanced budget rule that would "preferably (have) constitutional provisions." Those signatories included 25 of the current 28 member states of the European … [Read more...] about Fiscal Discipline: Can Constitutions Help?
Macroeconomics and Finance
Living in the Age of Uncertainty
As Borges famously remarked, “Reality is not always probable, or likely.” So it seems in Latin America and the Caribbean: of all possible outcomes the one we have lived through is not the one many would have predicted. Moreover, as we look to the future, current forecasts display marked differences across countries and are subject to very high uncertainty. As this year … [Read more...] about Living in the Age of Uncertainty
Behavioral Economics for Better Public Policies
Would you save more if 10% of your paycheck was automatically deposited into a separate account in your name? Would you feel more obliged to pay your taxes if you knew all the neighbors on your block had paid them? And would you use the hand dryer instead of a paper towel in a public bathroom if a notice reminded you of the environmental impact of cutting down trees? The … [Read more...] about Behavioral Economics for Better Public Policies
Latin America and Trump: the IDB’s Chief Economist Identifies Potential Opportunities for the Region
Latin America, like the rest of the world, cautiously awaits the beginning of Donald Trump's presidency in the United States. There is great anticipation to see if the president elect fulfills his campaign promises—many of them already played down—and how his government's policies affect the region. In an interview with the Spanish daily El País, the IDB's chief economist, José … [Read more...] about Latin America and Trump: the IDB’s Chief Economist Identifies Potential Opportunities for the Region
Chile’s Constitutional Reform: IDB Seminar Aims to Get It Right
Since the late 1980s, numerous Latin American countries have ushered in sweeping new constitutions to forge more inclusive, representative and just societies. In some places, like Brazil and Argentina, these constitutions have helped turn the page on the past and complete the transition from dictatorship to democracy. In others, like Colombia, they have targeted sources of … [Read more...] about Chile’s Constitutional Reform: IDB Seminar Aims to Get It Right