Ricardian Equivalence states that, under certain circumstances and for a given path of expenditures, the substitution of debt for taxes does not affect private sector wealth and consumption. Ricardian Equivalence is based on the premise that debt financing is only a change in the timing of...

In designing policy measures, including possible social safety nets, targeted to the poor, it is important to fully understand the efficiency implications of these measures. There is abundant macroeconomic literature on their negative effects on the poor`s work effort. The literature, however,...

This paper discusses the interrelationships between fiscal deficits and public debt. It analyzes the sources of growth of domestic and foreign public debt, and deals with the fiscal policy constraints imposed by a high level of indebtedness. It also discusses the macro-economic effects of public...

The 1990s currency debacles revitalized the search for early warning and forward-looking indicators of financial vulnerabilities. This paper contributes to this task by proposing an approach to assess central bank solvency and to examine the factors putting it at risk, and by refining the...

In recent years the level of taxation of many developing countries has changed dramatically over relatively short periods. These changes are too large and too sudden to attribute fully to a deterioration in tax administration or to changes in the traditional determinants of tax levels. The paper...

Ces derniegrave;res anneacute;es, le niveau d`imposition de nombreux pays en deacute;veloppement a eacute;volueacute; de faccedil;on spectaculaire sur des peacute;riodes relativement bregrave;ves. Ces changements ont eacute;teacute; trop profonds et trop soudains pour qu`on puisse les imputer...

La preacute;sente eacute;tude a plusieurs objets. Premiegrave;rement, elle preacute;sente une eacute;bauche de theacute;orie positive (donc ayant trait au monde reacute;el) de l`intervention du secteur public. Deuxiegrave;mement, elle contient une analyse relativement approfondie de l`activiteacute; du...

This paper surveys the fiscal landscape of Latin America. It analyzes external and domestic factors that over the years led to the deterioration of the fiscal accounts. It also discusses difficulties that are encountered in pursuing a sound fiscal policy under inflationary conditions. Issues...

The resumption of economic growth in Latin America is predicated on the successful restoration of fiscal discipline and stabilization. In restoring fiscal discipline, the mix of policy instruments should aim at maximizing efficiency in the use of domestic and foreign resources.Poverty...