What If Approving a Deficit Were a Crime?
In 1993, Guatemala effectively closed the door to financing government spending through monetary issuance, helping usher in decades of greater price stability. This essay asks whether the country should take the next step: prohibit deficit budgets by law and impose consequences on officials who authorize spending without identifying the resources to finance it.
When a Country Spends in Emergencies… as It Does in Normal Times
Diego turned eighteen just a few weeks ago. Next year he will vote for the first time and, like thousands of young Guatemalans, he still doesn’t know where he will study, which company will give him his first job, or how much he will earn five years from now. What he hasn’t yet imagined is […]