The Macroeconomy of Central America

1. Front Matter

   Pages i-xviii

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2. Fiscal Sustainability

   • Erik Offerdal

   Pages 1-40

3. Tax Reform: Trends and Possibilities

   • Janet G. Stotsky, Asegedech Woldemariam

   Pages 41-86

4. Public Expenditure and Governance

   • Ana Corbacho, Hamid R. Davoodi

   Pages 87-141

5. Trade Structure and Policy

   • Guillermo Perry, Daniel Lederman, Rodrigo Suescún

   Pages 142-168

6. Choice of Exchange Rate Regimes

   • Robert Rennhack, Erik Offerdal, Valerie Mercer-Blackman

   Pages 169-193

7. Financial Dollarization: What to Do About It?

   • Alain Ize

   Pages 194-206

8. Back Matter

   Pages 207-221

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Opportunities for growth and investment in Central America could well improve in the coming years, as the region's ties with the world economy grow closer. This integration, however, also presents important challenges for economic policy to ensure that growth can be sustained and can benefit the poor. This book stresses the importance of keeping fiscal policy on a sustainable path, strengthening public investment in basic infrastructure and primary health care and primary and secondary education, and managing the risks associated with partial dollarization.

• economic policy
• fiscal policy
• growth

• International Monetary Fund, USA

  Erik Offerdal

ANA CORBACHO Economist, Fiscal Affairs Department, International Monetary Fund, USA HAMID R. DAVOODI Senior Economist, Middle East and Central Asia Department, International Monetary Fund, USA ALAIN IZE Advisor, Monetary and Financial Systems Department, International Monetary Fund, USA DANIEL LEDERMAN Senior Economist, World Bank, USA VALERIE MERCER-BLACKMAN Economist, Western Hemisphere Department, International Monetary Fund, USA GUILLERMO PERRY Chief Economist of the Latin American and Caribbean Region, World Bank, USA JANET G. STOTSKY Fiscal Affairs Department, International Monetary Fund, USA RODRIGO SUESCÚN Senior Economist, World Bank, USA ASEGEDECH WOLDEMARIAM Senior Research Officer, International Monetary Fund, USA

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