The Role of Fiscal Policy in Sustainable Stabilization Evidence From Latin America

This paper reviews the role of fiscal policy in a number of stabilization programs in Latin America since the early 1980s. The paper highlights the importance of sustainable fiscal adjustment in stabilization efforts, and discusses the main issues that arise in this context. By reviewing the Latin A...

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Bibliographic Details
Main Author: Schwartz, Gerd
Other Authors: Ter-Minassian, Teresa
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1997
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a Argentina 
653 |a Inflation 
653 |a Revenue administration 
653 |a Public finance & taxation 
653 |a Deflation 
653 |a Fiscal Policy 
653 |a Fiscal consolidation 
653 |a Fiscal policy 
653 |a National Government Expenditures and Related Policies: General 
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653 |a Expenditures, Public 
653 |a Prices 
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653 |a Revenue 
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520 |a This paper reviews the role of fiscal policy in a number of stabilization programs in Latin America since the early 1980s. The paper highlights the importance of sustainable fiscal adjustment in stabilization efforts, and discusses the main issues that arise in this context. By reviewing the Latin American experience, it is argued that responsibility for failed stabilization attempts can be traced to four main factors: inconsistent policy mixes; excessive reliance on temporary factors of improvement in the fiscal accounts; failure to implement fundamental fiscal reforms; and lack of complementary structural reforms