Fiscal Policy in Crisis (Tanzi)

Fiscal Policy in a Perior of Crisis presented by Vito Tanzi at the Seminario Internacional Las Administraciones Tribunarias Frente a la Crisis Internacional, SUNAT, Lima/Perú, 9-11/11/2009. He commented: “Countercyclical policy can only alleviate the impact of the crisis, not neutralize it. Thus countercyclical polices used should be focused on the most vulnerable sectors. They cannot hope to maintain economic activity. The multipliers are too low and the countries are too open”. (see attached)