High government debts, weak economic growth, vulnerability to external shocks and the design of sound fiscal consolidation strategies are among the most critical issues that some of the Caribbean countries have currently to deal with. Stabilization programs may harm economic growth but, under...

This paper contributes to the analysis of the Caribbean's growth performance by setting out a framework for benchmarking indicators of key micro drivers and related structural policies that help explain differentials in productivity and real GDP per capita across the region, and relative to...

Trade liberalization played an important role in the transformation of the Irish economy, starting in the early 1960s. Tax relief and industrial subsidies were also significant. This document explains why the Irish case is relevant for Latin America; summarize the main explanations for Ireland's...

The purpose of this guideline is to discuss the objectives and approaches of regional (subnational) development programs in order to provide guidance on issues related to evaluating the impact of these programs. Regional development programs are designed to improve the income-generating capacity...

The purpose of this guideline is to discuss the objectives and approaches of regional (subnational) development programs in order to provide guidance on issues related to evaluating the impact of these programs. Regional development programs are designed to improve the income-generating capacity...

This paper surveys the recent literature on the political economy of fiscal policy, in particular the accumulation of government debt. The authors examine three possible determinants of fiscal balances: opportunistic behavior by policymakers, heterogeneous fiscal preferences of either voters or...

Several European countries face challenges reminiscent of those faced by the emerging economies of Latin America. The economic booms in some peripheral Euro-zone countries financed by large capital inflows; the credit and asset price booms and then the busts including Sudden Stops in capital...

Tax policy is among the most common and relevant instruments in the toolkit of policy-makers when thinking about promoting growth, yet there is not compelling evidence regarding its effect in Latin American countries. Using a variety of approaches, we estimate the effects on growth of the most...

The recent financial crisis has initiated pressures for not only policy reform but also fundamental institutional fiscal reforms. This paper explores the connection between economic crises and fiscal institutional reforms in a region that has experienced plenty of both in recent years, namely...

Inflation targeting has been adopted in a set of emerging economies, including eight countries in Latin America. The success of this regime may depend critically on the credibility of the target and the expectation that the authorities will take appropriate actions if the target is breached....