The challenges of Latin American fiscal policy in relation to stabilisation and redistribution

The purpose of this article is to study the responses offered by the fiscal policy in Latin America in the current situation of ``soft landing''. Indeed, it appears that the region is exposed to a risk of negative external shock from developed countries and China and to a specific-country political risk. In these conditions, fiscal policy has a significant role to play in managing these risks by focusing on its stabilization and distributive functions. Moreover, we propose a set of different measures for each function. Finally, we show that Latin American countries do not suffer from financing constraints to apply our proposals.