The Impact of the International Financial Crises Upon Emerging Economies and the Performance of Discretionary Fiscal Policies: The Case of Argentina
DOI:
https://doi.org/10.55444/2451.7321.2010.v48.n2.4106Keywords:
international financial crises, discretionary fiscal policies, ArgentinaAbstract
Although international crises partially accounted for the recent weakArgentine economic performance, main causes have to be sought in domesticeconomic policies adding uncertainty to the decision process of economicsectors and amplifying crises’ effects. Government revenues exhibiteda positive, though decreasing, evolution explained by a contraction oftax revenues despite transfers from the eliminated Private Pension Systemand IMF`s special draw rights. However, public spending was in the rootof the government’s fi scal strain as their growth rate outweighed that ofrevenues and caused an erosion of the primary surplus, whose present levelartifi cially stemmed from exceptional revenue fl ows and the discretionaryseizing of pension funds. Finally, although the overall cyclical sensitivity of tax revenues increased, budget balance’s response to GDP did not suffi ce tocheck cycles and active fi scal policies had to strengthen stabilizing actions.
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Copyright (c) 2010 Ernesto Rezk, Ginette Lafit, Vanina Ricca
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