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

Produced by: 
International Monetary Fund
Available from: 
April 2015
Paper author(s): 
Oya Celasun; Francesco Grigoli; Keiko Honjo; Javier Kapsoli; Alexander Klemm; Bogdan Lissovolik; Jan Luksic; Marialuz Moreno Badia; Joana Pereira; Marcos Poplawski-Ribeiro; Baoping Shang; Yulia Ustyugova
Financial Economics
Macroeconomics - Economic growth - Monetary Policy
Politics and Economy

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?


Research section: 
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