Eduardo Fernández-Arias (IDB) and Peter Montiel (Williams) presented Crisis Response in Latin America: Is the “Rainy Day” At Hand? at the Fiscal Seminar CEPAL 2010 (paper and power-point) . The commented: “Social opportunity cost of funds is hign, government foreign borrowing costs are high, but financial returns on reserves are low. The implication is that there is a strong case for prudent countercyclical fiscal policy in the region directed toward productive public expenditures with reserves as a funding source”.
The paper is available in: http://www.eclac.cl/ilpes/noticias/paginas/5/38375/Fernadez_Arias_Montiel.pdf
And the exposition in: http://www.eclac.cl/ilpes/noticias/paginas/5/38375/Eduardo_Fernandez_Arias.pdf
