ࡱ> ,.+%` RA bjbjٕ2A  >$0h %%%%F% Ik0>H H H  S >%%%% Fiscal Factors in Latin Americas Financial Instability Shi Jianhua, Sun Hongbo After the debt crisis broke out in the 1980s, Latin American countries adopted procyclical fiscal policies. These policies, along with the shortcomings of debt management, created hidden perils fort the outbreaks of the repeated financial crises in the 1990s. The fiscal factors in the regions financial instability include the following: 1) The fiscal policies were highly procyclical. 2) Increase of public debt aggravated the procyclicality. 3) Debt management was flawed. 4) The public sector accumulated large amount of implicit debt. 5) The narrow tax base weakened fiscal sustainability, leading to limited capability of the government to service the debt. 6) Rigidity of the fiscal policy reduced room of maneuver for the government to deal with financial crisis. 7) Poor quality of fiscal expenditure led to weakening function of fiscal development. 8) Fiscal relations were not straightened. 9) Non-budgetary expenditures generated more fiscal risks. 8CDOQI U V > ? @ A ߪh%$h@`h%B*CJOJQJo(phh%B*CJOJQJphh%B*CJOJQJo(ph!h@`h%B*CJOJQJphh%5B*CJOJQJph 8PQV  @ A gd%$a$gd%A 0182P. A!"#$%S \`\ %cke $1$a$1B*CJ4KHOJQJ_HaJ4mH nHph333sH tH$A@$ ؞k=W[SOBi@B nfh