How Much Room Does Latin America and the Caribbean Have for Implementing Counter-Cyclical Fiscal Policies?

Latin America's government debt has exhibited a clear downward trend since 2003. While this has been partly due to rapidly increasing commodity prices, more sustainable fiscal policies have also been a contributing factor. In effect, in a sign...

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Main Authors:	Calderón, Cesar, Fajnzylber, Pablo
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FUNDS ADJUSTMENT PROGRAMS ARBITRAGE BANK POLICY BARRIER BASIS POINTS BOND BOND MARKETS BORROWING COSTS BUDGETARY INSTITUTIONS BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CENTRAL BANKS COMMODITY COMMODITY PRICES CREDIT CONSTRAINTS CREDIT LINE CREDIT MARKETS CREDITWORTHINESS CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT SURPLUSES DEBT BURDEN DEBT LEVELS DEBT MANAGEMENT DEBT MARKETS DEBT SUSTAINABILITY DEVELOPING COUNTRIES DEVELOPMENT BANK DISCRETIONARY MEASURES DISCRETIONARY POLICY DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC FLUCTUATIONS ECONOMIC SLOWDOWN EMERGING MARKET EMERGING MARKET ECONOMIES EXISTING DEBT EXPENDITURE EXPENDITURES EXPORTERS EXTERNAL BORROWING EXTERNAL CAPITAL EXTERNAL FINANCING FINANCIAL BURDEN FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL POLICY FINANCING COSTS FISCAL ADJUSTMENT FISCAL ADJUSTMENTS FISCAL BALANCES FISCAL CONSOLIDATION FISCAL CONTRACTION FISCAL DISCIPLINE FISCAL EXPANSIONS FISCAL POLICIES FISCAL POLICY FISCAL RULES FISCAL STIMULUS FISCAL SUSTAINABILITY GOVERNMENT DEBT GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SOLVENCY INCOME INCOME TAXES INDUSTRIAL COUNTRIES INFRASTRUCTURE INVESTMENTS INSTITUTIONAL BARRIERS INSTITUTIONAL CONSTRAINTS INSTRUMENT INTEREST PAYMENTS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MONETARY FUND INVESTMENT PROJECTS LIMITED ACCESS LIQUIDITY LIQUIDITY CONSTRAINTS LOCAL CURRENCY LONG TERM DEBT MACROECONOMIC POLICIES MACROECONOMIC POLICY MACROECONOMIC STABILITY MATURITY MONETARY POLICY OIL PRICES OUTPUT OUTPUT GAP POLICY RESPONSES PORTFOLIO PRIMARY BALANCE PRIMARY EXPENDITURE PRIMARY SPENDING PRIMARY SURPLUS PRIVATE CREDIT PUBLIC DEBT PUBLIC DEFICITS PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR RESERVES SAFETY NETS SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOLVENCY SWAP TAX TAX COLLECTION TOTAL DEBT TRACK RECORD VOLATILITY
Online Access:	http://documents.worldbank.org/curated/en/2009/04/11954156/much-room-latin-america-caribbean-implementing-countercyclical-fiscal-policies-much-room-latin-america-caribbean-implementing-counter-cyclical-fiscal-policies http://hdl.handle.net/10986/10988

id	okr-10986-10988
recordtype	oai_dc
spelling	okr-10986-109882021-04-23T14:02:53Z How Much Room Does Latin America and the Caribbean Have for Implementing Counter-Cyclical Fiscal Policies? Calderón, Cesar Fajnzylber, Pablo ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FUNDS ADJUSTMENT PROGRAMS ARBITRAGE BANK POLICY BARRIER BASIS POINTS BOND BOND MARKETS BORROWING COSTS BUDGETARY INSTITUTIONS BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CENTRAL BANKS COMMODITY COMMODITY PRICES CREDIT CONSTRAINTS CREDIT LINE CREDIT MARKETS CREDITWORTHINESS CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT SURPLUSES DEBT BURDEN DEBT LEVELS DEBT MANAGEMENT DEBT MARKETS DEBT SUSTAINABILITY DEVELOPING COUNTRIES DEVELOPMENT BANK DISCRETIONARY MEASURES DISCRETIONARY POLICY DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC FLUCTUATIONS ECONOMIC SLOWDOWN EMERGING MARKET EMERGING MARKET ECONOMIES EXISTING DEBT EXPENDITURE EXPENDITURES EXPORTERS EXTERNAL BORROWING EXTERNAL CAPITAL EXTERNAL FINANCING FINANCIAL BURDEN FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL POLICY FINANCING COSTS FISCAL ADJUSTMENT FISCAL ADJUSTMENTS FISCAL BALANCES FISCAL CONSOLIDATION FISCAL CONTRACTION FISCAL DISCIPLINE FISCAL EXPANSIONS FISCAL POLICIES FISCAL POLICY FISCAL RULES FISCAL STIMULUS FISCAL SUSTAINABILITY GOVERNMENT DEBT GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SOLVENCY INCOME INCOME TAXES INDUSTRIAL COUNTRIES INFRASTRUCTURE INVESTMENTS INSTITUTIONAL BARRIERS INSTITUTIONAL CONSTRAINTS INSTRUMENT INTEREST PAYMENTS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MONETARY FUND INVESTMENT PROJECTS LIMITED ACCESS LIQUIDITY LIQUIDITY CONSTRAINTS LOCAL CURRENCY LONG TERM DEBT MACROECONOMIC POLICIES MACROECONOMIC POLICY MACROECONOMIC STABILITY MATURITY MONETARY POLICY OIL PRICES OUTPUT OUTPUT GAP POLICY RESPONSES PORTFOLIO PRIMARY BALANCE PRIMARY EXPENDITURE PRIMARY SPENDING PRIMARY SURPLUS PRIVATE CREDIT PUBLIC DEBT PUBLIC DEFICITS PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR RESERVES SAFETY NETS SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOLVENCY SWAP TAX TAX COLLECTION TOTAL DEBT TRACK RECORD VOLATILITY Latin America's government debt has exhibited a clear downward trend since 2003. While this has been partly due to rapidly increasing commodity prices, more sustainable fiscal policies have also been a contributing factor. In effect, in a significant break with the past, cyclically adjusted government balances have raised (fallen) in response to increases (reductions) in debt levels. However, Latin governments have continued to under?save in good times and therefore fiscal policy has remained pro-cyclical, thus weakening the ability to protect the poor and maintain infrastructure investments during bad times. Financing and institutional constraints to more counter?cyclical fiscal policies still remain in most countries. They are lowest in Chile, followed by Brazil and Colombia, and highest in Ecuador and Venezuela. Looking forward, long?term sustainability considerations cannot be ignored as decisions are made regarding the size, composition and targeting of fiscal stimulus packages. 2012-08-13T13:47:46Z 2012-08-13T13:47:46Z 2009-04 http://documents.worldbank.org/curated/en/2009/04/11954156/much-room-latin-america-caribbean-implementing-countercyclical-fiscal-policies-much-room-latin-america-caribbean-implementing-counter-cyclical-fiscal-policies http://hdl.handle.net/10986/10988 English Latin America and the Caribbean Region (LCR) Crisis Briefs CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FUNDS ADJUSTMENT PROGRAMS ARBITRAGE BANK POLICY BARRIER BASIS POINTS BOND BOND MARKETS BORROWING COSTS BUDGETARY INSTITUTIONS BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CENTRAL BANKS COMMODITY COMMODITY PRICES CREDIT CONSTRAINTS CREDIT LINE CREDIT MARKETS CREDITWORTHINESS CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT SURPLUSES DEBT BURDEN DEBT LEVELS DEBT MANAGEMENT DEBT MARKETS DEBT SUSTAINABILITY DEVELOPING COUNTRIES DEVELOPMENT BANK DISCRETIONARY MEASURES DISCRETIONARY POLICY DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC FLUCTUATIONS ECONOMIC SLOWDOWN EMERGING MARKET EMERGING MARKET ECONOMIES EXISTING DEBT EXPENDITURE EXPENDITURES EXPORTERS EXTERNAL BORROWING EXTERNAL CAPITAL EXTERNAL FINANCING FINANCIAL BURDEN FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL POLICY FINANCING COSTS FISCAL ADJUSTMENT FISCAL ADJUSTMENTS FISCAL BALANCES FISCAL CONSOLIDATION FISCAL CONTRACTION FISCAL DISCIPLINE FISCAL EXPANSIONS FISCAL POLICIES FISCAL POLICY FISCAL RULES FISCAL STIMULUS FISCAL SUSTAINABILITY GOVERNMENT DEBT GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SOLVENCY INCOME INCOME TAXES INDUSTRIAL COUNTRIES INFRASTRUCTURE INVESTMENTS INSTITUTIONAL BARRIERS INSTITUTIONAL CONSTRAINTS INSTRUMENT INTEREST PAYMENTS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MONETARY FUND INVESTMENT PROJECTS LIMITED ACCESS LIQUIDITY LIQUIDITY CONSTRAINTS LOCAL CURRENCY LONG TERM DEBT MACROECONOMIC POLICIES MACROECONOMIC POLICY MACROECONOMIC STABILITY MATURITY MONETARY POLICY OIL PRICES OUTPUT OUTPUT GAP POLICY RESPONSES PORTFOLIO PRIMARY BALANCE PRIMARY EXPENDITURE PRIMARY SPENDING PRIMARY SURPLUS PRIVATE CREDIT PUBLIC DEBT PUBLIC DEFICITS PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR RESERVES SAFETY NETS SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOLVENCY SWAP TAX TAX COLLECTION TOTAL DEBT TRACK RECORD VOLATILITY
spellingShingle	ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FUNDS ADJUSTMENT PROGRAMS ARBITRAGE BANK POLICY BARRIER BASIS POINTS BOND BOND MARKETS BORROWING COSTS BUDGETARY INSTITUTIONS BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CENTRAL BANKS COMMODITY COMMODITY PRICES CREDIT CONSTRAINTS CREDIT LINE CREDIT MARKETS CREDITWORTHINESS CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT SURPLUSES DEBT BURDEN DEBT LEVELS DEBT MANAGEMENT DEBT MARKETS DEBT SUSTAINABILITY DEVELOPING COUNTRIES DEVELOPMENT BANK DISCRETIONARY MEASURES DISCRETIONARY POLICY DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC FLUCTUATIONS ECONOMIC SLOWDOWN EMERGING MARKET EMERGING MARKET ECONOMIES EXISTING DEBT EXPENDITURE EXPENDITURES EXPORTERS EXTERNAL BORROWING EXTERNAL CAPITAL EXTERNAL FINANCING FINANCIAL BURDEN FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL POLICY FINANCING COSTS FISCAL ADJUSTMENT FISCAL ADJUSTMENTS FISCAL BALANCES FISCAL CONSOLIDATION FISCAL CONTRACTION FISCAL DISCIPLINE FISCAL EXPANSIONS FISCAL POLICIES FISCAL POLICY FISCAL RULES FISCAL STIMULUS FISCAL SUSTAINABILITY GOVERNMENT DEBT GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SOLVENCY INCOME INCOME TAXES INDUSTRIAL COUNTRIES INFRASTRUCTURE INVESTMENTS INSTITUTIONAL BARRIERS INSTITUTIONAL CONSTRAINTS INSTRUMENT INTEREST PAYMENTS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MONETARY FUND INVESTMENT PROJECTS LIMITED ACCESS LIQUIDITY LIQUIDITY CONSTRAINTS LOCAL CURRENCY LONG TERM DEBT MACROECONOMIC POLICIES MACROECONOMIC POLICY MACROECONOMIC STABILITY MATURITY MONETARY POLICY OIL PRICES OUTPUT OUTPUT GAP POLICY RESPONSES PORTFOLIO PRIMARY BALANCE PRIMARY EXPENDITURE PRIMARY SPENDING PRIMARY SURPLUS PRIVATE CREDIT PUBLIC DEBT PUBLIC DEFICITS PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR RESERVES SAFETY NETS SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOLVENCY SWAP TAX TAX COLLECTION TOTAL DEBT TRACK RECORD VOLATILITY Calderón, Cesar Fajnzylber, Pablo How Much Room Does Latin America and the Caribbean Have for Implementing Counter-Cyclical Fiscal Policies?
geographic_facet	Latin America & Caribbean
relation	Latin America and the Caribbean Region (LCR) Crisis Briefs
description	Latin America's government debt has exhibited a clear downward trend since 2003. While this has been partly due to rapidly increasing commodity prices, more sustainable fiscal policies have also been a contributing factor. In effect, in a significant break with the past, cyclically adjusted government balances have raised (fallen) in response to increases (reductions) in debt levels. However, Latin governments have continued to under?save in good times and therefore fiscal policy has remained pro-cyclical, thus weakening the ability to protect the poor and maintain infrastructure investments during bad times. Financing and institutional constraints to more counter?cyclical fiscal policies still remain in most countries. They are lowest in Chile, followed by Brazil and Colombia, and highest in Ecuador and Venezuela. Looking forward, long?term sustainability considerations cannot be ignored as decisions are made regarding the size, composition and targeting of fiscal stimulus packages.
format	Publications & Research :: Brief
author	Calderón, Cesar Fajnzylber, Pablo
author_facet	Calderón, Cesar Fajnzylber, Pablo
author_sort	Calderón, Cesar
title	How Much Room Does Latin America and the Caribbean Have for Implementing Counter-Cyclical Fiscal Policies?
title_short	How Much Room Does Latin America and the Caribbean Have for Implementing Counter-Cyclical Fiscal Policies?
title_full	How Much Room Does Latin America and the Caribbean Have for Implementing Counter-Cyclical Fiscal Policies?
title_fullStr	How Much Room Does Latin America and the Caribbean Have for Implementing Counter-Cyclical Fiscal Policies?
title_full_unstemmed	How Much Room Does Latin America and the Caribbean Have for Implementing Counter-Cyclical Fiscal Policies?
title_sort	how much room does latin america and the caribbean have for implementing counter-cyclical fiscal policies?
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2009/04/11954156/much-room-latin-america-caribbean-implementing-countercyclical-fiscal-policies-much-room-latin-america-caribbean-implementing-counter-cyclical-fiscal-policies http://hdl.handle.net/10986/10988
_version_	1764415108925095936

How Much Room Does Latin America and the Caribbean Have for Implementing Counter-Cyclical Fiscal Policies?

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