Main changes have occurred in the comprehension and practice of fiscal policy over the last century. In this paper we do a brief historical account and show that the prominence of fiscal policy as a policy tool has waxed and waned, a condition that has hindered the capability of researchers to...

This paper presents a dual economy model of the fix-price/flex-price kind that explicitly allows for the existence of a government budget constraint in a fully open economy. Both the external and fiscal closures resemble very much the contemporary experience of several Latin American countries,...