Fiscal Policy, Stabilization, and Growth

Luis Serven, Guillermo E. Perry, And Rodrigo Suescún

Description

Fiscal policy in Latin America has been guided primarily by short-term liquidity targets whose observance was taken as the main exponent of fiscal prudence, with attention focused almost exclusively on the levels of public debt and the cash deficit. Very little attention was paid to the effects of fiscal policy on growth and on macroeconomic volatility over the cycle. Important issues such as the composition of public expenditures (and its effects on growth), the ability of fiscal policy to stabilize cyclical fluctuations, and the currency composition of public debt were largely neglected. As a result, fiscal policy has often amplified cyclical volatility and dampened growth.
'Fiscal Policy, Stabilization, and Growth' explores the conduct of fiscal policy in Latin America and its consequences for macroeconomic stability and long-term growth. In particular, the book highlights the procyclical and anti-investment biases embedded in the region's fiscal policies, explores their causes and macroeconomic consequences, and asesses their possible solutions.

Sujets

• Volatile
• Fluctuations
• Procyclical
• Automatic stabilizer
• Fiscal adjustment
• Business cycle

Informations

• Publié par: world-bank-publications
• Publié le: 19 octobre 2007
• Nombre de lectures: 33
• EAN13: 9780821370858
• Langue: English
• Poids de l'ouvrage: 4 Mo

Extrait

Fiscal Policy,
Stabilization,
and Growth
PRUDENCE OR ABSTINENCE?
Edited by
Guillermo E. Perry
Luis Servén
Rodrigo SuescúnFiscal Policy, Stabilization,
and GrowthFiscal Policy,
Stabilization,
and Growth
Prudence or Abstinence?
Edited by
Guillermo E. Perry, Luis Servén,
and Rodrigo Suescún© 2008 The International Bank for Reconstruction and Development/The World Bank
1818 H Street NW
Washington DC 20433
Telephone: [phone]
Internet: www.worldbank.org
E-mail: [e-mail]
All rights reserved
1 2 3 4 10 09 08 07
The findings, interpretations, and conclusions expressed in this volume do not necessarily
reflect the views of the Executive Directors of The World Bank or the governments they
represent.
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not imply any judgement on the part of The World Bank concerning the legal status of any
territory or the endorsement or acceptance of such boundaries.
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ISBN: 978-0-8213-7084-1
eISBN: 978-0-8213-7085-8
DOI: 10.1596/978-0-8213-7084-1
Library of Congress Cataloging-in-Publication Data
Fiscal policy, stabilization, and growth : prudence or abstinence? / edited by Guillermo Perry,
Luis Servén, and Rodrigo Suescún.
p. cm.—(Latin American development forum series)
Includes bibliographical references and index.
ISBN: 978-0-8213-7084-1
eISBN: 978-0-8213-7085-8
1. Fiscal policy—Latin America. 2. Finance, Public—Latin America. 3. Economic stabilization—
Latin America. 4. Latin America—Economic policy.
I. Perry, Guillermo. II. Servén, Luis. III. Suescún, Rodrigo.
HJ799.53.F574 2008
336.3098—dc22
2007034287
Cover design: Ultra Designs. Latin American
Development Forum Series
This series was created in 2003 to promote debate, disseminate informa-
tion and analysis, and convey the excitement and complexity of the most
topical issues in economic and social development in Latin America and
the Caribbean. It is sponsored by the Inter-American Development Bank,
the United Nations Economic Commission for Latin America and the
Caribbean, and the World Bank. The manuscripts chosen for publication
represent the highest quality in each institution’s research and activity out-
put and have been selected for their relevance to the academic community,
policy makers, researchers, and interested readers.
Advisory Committee Members
Inés Bustillo, Director, Washington Office, Economic Commission for
Latin America and the Caribbean, United Nations
José Luis Guasch, Senior Adviser, Latin America and the Caribbean
Region, World Bank; and Professor of Economics, University of Cali-
fornia, San Diego
Santiago Levy, General Manager and Chief Economist, Research Depart-
ment, Inter-American Development Bank
Eduardo Lora, Principal Adviser, Research Department, Inter-American
Development Bank
José Luis Machinea, Executive Secretary, Economic Commission for Latin
America and the Caribbean, United Nations
Guillermo E. Perry, Chief Economist, Latin America and the Caribbean
Region, World Bank
Luis Servén, Research Manager, Development Economics Vice Presidency,
World Bank
Augusto de la Torre
Region, World Bank
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