A Balancing Act : Reform Options for Paraguay’s Fiscal Responsibility Law / Antonio David, Natalija Novta.

Format:

Book

Government document

Author/Creator:

David, Antonio.

Contributor:

Novta, Natalija.

Series:

IMF Working Papers; Working Paper ; No. 2016/226

IMF Working Papers

Language:

English

Physical Description:

1 online resource (34 pages)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2016.

Summary:

Paraguay faces a trade-off between building fiscal credibility and amending the existing fiscal rule to accommodate infrastructure investment and provide space for countercyclical policies. In this paper, we discuss several alternative fiscal rules for Paraguay and present simulations of debt trajectories in each case, assuming a baseline and three deterministic shock scenarios. We provide a supplementary Excel file to replicate debt simulations under different fiscal rules. The results suggest that potential modifications to make the fiscal rules more flexible in Paraguay should be accompanied by a number of safeguards that enhance credibility of the fiscal anchor and preserve sustainability.

Contents:

Cover

A Balancing Act: Reform Options for Paraguay's Fiscal Responsibility Law

I. INTRODUCTION

II. IMPLEMENTATION OF THE FRL IN PARAGUAY

III. LESSONS FOR PARAGUAY FROM THE INTERNATIONAL EXPERIENCE WITH FISCAL RULES

IV. REVISITING PARAGUAY'S FRL AND REFORM OPTIONS

V. SIMULATIONS

VI. IMPLEMENTATION ISSUES

VII. CONCLUSION AND POLICY RECOMMENDATIONS

References

ANNEX I: EQUATIONS UNDERLYING THE SIMULATED DEBT TRAJECTORIES

ANNEX II: ELASTICITIES OF REVENUE AND EXPENDITURE TO GDP IN PARAGUAY.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9781484301784

1484301781

9781484301807

1484301803

OCLC:

989713373