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


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

Publication Date:

April 30, 2015

Electronic Access:

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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.


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?


Staff Discussion Notes No. 2015/006



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


Publication Date:

April 30, 2015



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