Riding the roller coaster: fiscal policies of nonrenewable resource exporters in Latin America and the Caribbean
In the last decade the prices of nonrenewable resources which constitute a critical source of fiscal revenue in many Latin American and Caribbean countries recorded sharp swings correlated with economic growth developments in the world and in the region. Similar episodes in the past led to boom and bust cycles but there is a perception that lessons were learned this time around. This paper analyzes the fiscal policies of nonrenewable-resource-exporting countries (NRECs) in Latin America and the Caribbean during the economic and resource price cycle of the last decade. The analysis focuses on two periods: the boom years (2003–08) and the more recent period characterized by the global financial crisis and the receding of resource prices.