IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/16-226.html
   My bibliography  Save this paper

A Balancing Act; Reform Options for Paraguay’s Fiscal Responsibility Law

Author

Listed:
  • Antonio David
  • Natalija Novta

Abstract

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.

Suggested Citation

  • Antonio David & Natalija Novta, 2016. "A Balancing Act; Reform Options for Paraguay’s Fiscal Responsibility Law," IMF Working Papers 16/226, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:16/226
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=44410
    Download Restriction: no

    References listed on IDEAS

    as
    1. Elva Bova & Marta Ruiz-Arranz & Frederik G Toscani & H. Elif Ture, 2016. "The Fiscal Costs of Contingent Liabilities; A New Dataset," IMF Working Papers 16/14, International Monetary Fund.
    2. Eugen Tereanu & Anita Tuladhar & Alejandro Simone, 2014. "Structural Balance Targeting and Output Gap Uncertainty," IMF Working Papers 14/107, International Monetary Fund.
    3. Till Cordes & Tidiane Kinda & Priscilla S Muthoora & Anke Weber, 2015. "Expenditure Rules; Effective Tools for Sound Fiscal Policy?," IMF Working Papers 15/29, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Fiscal policy; Fiscal responsibility law; Fiscal rules; Paraguay; Fiscal Rules; Fiscal Governance; Paraguay; Fiscal Governance;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:16/226. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi) The email address of this maintainer does not seem to be valid anymore. Please ask Hassan Zaidi to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/imfffus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.