Complying with Fiscal Rules in Latin America and the Caribbean: From Promises to Action

October 4, 2023  

By Martín Ardanaz, Oscar Valencia and Carolina Ulloa Suárez. 

Fiscal rules have become a common policy tool to promote the sustainability of public finances, as the number of countries with at least one fiscal rule has grown from ten in 1991 to more than 100 by 2021. Although fiscal rules promise to support fiscal discipline and maintain debt sustainability, their track record is often mixed, as simply adopting a fiscal rule does not necessarily guarantee improved fiscal performance. 

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