The current fiscal policy does not differentiate capital expenditure from current expenditure. Since the global deficit target is fixed according to the present fiscal policy rule, the non financial expenditure becomes pro cyclical, and the public investment is adjusted to meet the targeted...

This paper presents a Keynesian effective demand model that reproduces expansive or contractive effects of an expansionary fiscal policy as a function of the initial conditions of the public finances. In an economy with fiscal slack, when observed primary surplus is above the optimal fiscal...

This paper deals with Viceroy Toledo’s governing plan and the modern concepts of development. It is a review of Viceroy Toledo’s plan genesis from 1568’s Junta Magna, the Toledo’s trip over the Andes and the final establishment of his two main economic policy pillars: the mita and the...