Sometimes we need a little push to do things that we know are good for us. We find a “gym buddy” to somehow commit to work out. Or we bet money with a friend on who will be able to spend a month without smoking. When it comes to saving, these nudges are also important for many, even if they are not aware of it. Previous posts explored the main reasons why people in Latin … [Read more...] about Helping Latin Americans Save
Latin American and Caribbean Macro: Secular Stagflation or (Just) a Painful Transition?
What’s going on in Latin American and Caribbean economies? Growth keeps falling, but unlike the rest of the world, inflation keeps going up (see Figure 1). In this blog I outline two possible views. Policy choices—and what to expect in 2016 and beyond—may depend on the explanation.[1] Some argue that advanced economies have entered a phase of secular stagnation (See Larry … [Read more...] about Latin American and Caribbean Macro: Secular Stagflation or (Just) a Painful Transition?
Using a Tax to Tackle Traffic
To drive in a major Latin American or Caribbean city is to know what it is like to be stuck in bumper-to-bumper traffic, enveloped in clouds of exhaust, and driven to distraction by the bleating horns of exasperated commuters. The chronic gridlock in the region's megacities not only creates stress. It leads to accidents, pollution-related health problems, and climate-warming … [Read more...] about Using a Tax to Tackle Traffic
Want People to Pay Their Taxes? Try a Visit
For years, policy makers in Latin America and the Caribbean have struggled with the immense and chronic problem of tax evasion, which averages close to 50% in many countries and limits governments' ability to spend on schools, hospitals and other critical needs. The problem relates not only to the difficulty of finding tax delinquents. It has to do with the difficulty of … [Read more...] about Want People to Pay Their Taxes? Try a Visit
Why clientelism sparks corruption?
Art Against Corruption Twelve years ago, the United Nations General Assembly designated December 9 as "International Anti-Corruption Day." Today, it seems that this measure has already achieved its purpose, at least in Latin America and the Caribbean where we have unquestionably increased our awareness of the disease. It is widely recognized that corruption … [Read more...] about Why clientelism sparks corruption?