A Framework for Studying the Monetary and Fiscal History of Latin America, 1960-2017

March 2019
Timothy J. Kehoe, Juan Pablo Nicolini, and Thomas J. Sargent

In this chapter, we develop a conceptual framework for analyzing the interactions between aggregate fiscal policy and monetary policy. The framework draws on existing models that analyze sovereign debt crises and balance‐of‐payments crises. We intend this framework as a guide for analyzing the monetary and fiscal history of a set of major Latin American countries from the 1960s until now.

The working paper can be found here.