An analysis of fiscal management and macroeconomic stability: An econometric study of public policies in Latin American countries

Flores-Sotelo W.S.; Pongo-águila O.; Rivas-Peña C.A.; Chávez-Diaz J.M. · Journal of Infrastructure, Policy and Development (2024) · DOI: 10.24294/jipd.v8i8.6547

Resumen

The main objective of the study was to assess the impact of fiscal management on macroeconomic stability in emerging countries between 2012 and 2022. The study drew on macroeconomic theory, which postulates the importance of responsible fiscal policies for economic stability. Information was taken from ten emerging Latin American countries, and the analysis was carried out through a quantitative approach, using an econometric model. A significant relationship was found between fiscal management and macroeconomic stability, evidencing that effective fiscal policies are crucial for macroeconomic stability in emerging countries. The findings emphasize that balanced fiscal management, which avoids falling into cycles of debt and deficit, is essential for long-term stability. Practices that promote fiscal stability, such as greater efficiency in public spending and effective tax collection, can contribute significantly to economic stability and sustained growth. The results also suggest that fiscal policies should take into account human development conditions and annual particularities in order to formulate effective fiscal policies. It highlights those countries with best fiscal practices, reflected in low debt-to-GDP levels and high fiscal stability, are more likely to achieve macroeconomic stability and sustainable economic growth.

Instituciones: Universidad Nacional Federico Villarreal