scarcity of saving in LATAM, thereby increasing investment and growth. Yet, the data and several case studies suggest that the … saving and investment rates tends to be a time consuming process. This also suggests that greater political instability and … polarization would induce consumers to be more cautious in increasing their saving and investment rates following a reform. Hence …

externality is embodied in aggregate investment, the optimal policy calls for subsidizing the cost of capital in the traded sector … reserves may backfire if the needed sterilization would increase the cost of investment in the traded sector …

This paper evaluates optimal public investment and fiscal policy for countries characterized by limited tax and debt … goods should be financed only from current revenue. With investment in the stock of public infrastructure, public sector …

with respect to the inwardness of a technology is irrelevant: investment will be channeled to the more productive sectors …, independently of their trade inwardness, With limited capital market integration a given investment will generate two effects. The … dependency of the nation. With partial integration, investment that increases trade dependency is desirable. If the credit …