Fiscal Policy in Latin America: Lessons and Legacies of the Global Financial Crisis

By Oya Celasun, Francesco Grigoli, Keiko Honjo, Javier Kapsoli, Alexander D Klemm, Bogdan Lissovolik, Jan Luksic, Marialuz Moreno Badia, Joana Pereira, Marcos Poplawski Ribeiro, Baoping Shang, Yulia Ustyugova

April 30, 2015

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Oya Celasun, Francesco Grigoli, Keiko Honjo, Javier Kapsoli, Alexander D Klemm, Bogdan Lissovolik, Jan Luksic, Marialuz Moreno Badia, Joana Pereira, Marcos Poplawski Ribeiro, Baoping Shang, and Yulia Ustyugova. Fiscal Policy in Latin America: Lessons and Legacies of the Global Financial Crisis, (USA: International Monetary Fund, 2015) accessed October 6, 2024

Also available in: español

Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

Summary

Latin America’s bold fiscal policy reaction to the global financial crisis was hailed as a sign that the region had finally overcome its procyclical fiscal past. However, most countries of the region have not yet rebuilt their fiscal space, despite buoyant commodity revenues and relatively strong growth in the aftermath of the crisis. Using the experience of Brazil, Chile, Colombia, Mexico, Peru, and Uruguay, this paper examines the lessons and legacies of the crisis by addressing the following questions, among others: How much did the 2009 fiscal stimulus help growth? What shortcomings were revealed in the fiscal policy frameworks? What institutional reforms are now needed to provide enduring anchors for fiscal policy? How much rebuilding of buffers is needed going forward?

Subject: Expenditure, Fiscal governance, Fiscal policy, Fiscal stance, Public debt

Keywords: Emerging market, Financial crisis, Fiscal governance, Fiscal institutions, Fiscal policy, Fiscal stance, Global, IMF country, IMF staff calculation, Latin America, Output gap, Real GDP, SDN, Sovereign wealth fund

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Staff Discussion Notes No. 2015/006
Stock No:

SDNEA201506
ISBN:

9781498304412
ISSN:

2617-6750

Notes

Also Available in Spanish; Also see Technical Appendix in English; in Spanish

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