This paper analyzes how fiscal policies and credit constraints can affect the impact of macroeconomic volatility on long-run growth. The model by Aghion et al. (2005) is extended by allowing for governmental fiscal policy over the business cycle. The analysis shows that in an economy facing...

Frontmatter -- Acknowledgments -- Contents -- Preface -- Chapter 1 An Introduction to the Economies of Latin America -- Chapter 2 A Brief Economic History -- Chapter 3 What is “Wrong”: The Usual List of Suspects -- Chapter 4 Argentina and Brazil -- Chapter 5 Chile, Colombia, Peru, and...