Reforming budgetary institutions in Latin America: The case for a NationalFiscal Council

Latin America's economies have made tremendous improvements in recent years . Following the lost decade of the 1980s, economic growth has resumed. But the fruits of this progress remain to be consolidated. The political consen sus supporting reform is fragile, and the economies of the region are still susceptible to destabilizing shocks, as recent events have underscored. Ev en well-devised economic policy strategies can be thrown off course by dist urbances. This article proposes an institutional reform-a National Fiscal C ouncil-designed to allow Latin American countries to break out of this vici ous circle.