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Cuadernos de Economía

Print version ISSN 0121-4772


LLORCA, Matthieu. Challenges to take in fiscal policy in Latin America regarding stabilization and redistribution. Cuad. Econ. [online]. 2016, vol.35, n.spe67, pp.119-147. ISSN 0121-4772.

The purpose of this article is to study the responses offered by the fiscal policy in Latin America in the current situation of "soft landing". Indeed, it appears that the region is exposed to a risk of negative external shock from developed countries and China and to a specific-country political risk. In these conditions, fiscal policy has a significant role to play to manage these risks by focusing on its stabilization and distributive functions. Moreover, we propose a set of different measures for each function. Finally, we show that Latin American countries do not suffer of financing constraint to apply our proposals

Keywords : Fiscal policy; Latin American countries; risks; stabilization; redistribution.

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