Fiscal Policy and Economic Reconstruction in Latin America

38 Pages Posted: 15 Feb 2006

See all articles by Vito Tanzi

Vito Tanzi

International Monetary Fund (IMF); National Bureau of Economic Research (NBER)

Date Written: November 2, 1989


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 such as the connection between external debt and fiscal policy and the role of public investment are also discussed. General guidelines are provided for a fiscal policy for the economic reconstruction of Latin America.

JEL Classification: 120, 320

Suggested Citation

Tanzi, Vito, Fiscal Policy and Economic Reconstruction in Latin America (November 2, 1989). IMF Working Paper No. 89/94, Available at SSRN:

Vito Tanzi (Contact Author)

International Monetary Fund (IMF) ( email )

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Tax Policy Division Fiscal Affairs Department
Washington, DC 20431
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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