Economic Review, Vol. 85, No. 2, 2000
Fiscal policy is at the very core of the profound economic transformation under way in Latin America. While price stabilization and liberalizing reforms have placed regional economies in a much more competitive position over the past two decades, the need for additional reform efforts—so-called second-generation reforms in areas like fiscal policy—is increasingly apparent.
Because sound fiscal policy is key to viable monetary policy and sustainable economic growth, few issues are as critical to the region's economic future. Recognizing the increasingly global setting in which the Federal Reserve carries out its responsibilities, in late 1999 the Federal Reserve Bank of Atlanta sponsored a conference on sustainable public sector finance in Latin America. Conference participants brought a variety of disciplinary approaches to examining the wide-ranging nature of fiscal policy. This summary provides an overview of the papers and presentations from the conference and highlights insights into the timely issues discussed.