Centro Internacional de Globalizacion is a project on Latin America to review the international development and experience of the economy of the country to reduce the pro-cyclicality and the bias of the fiscal policies through the adaptation of effective counter on the cyclical fiscal policy at the moment. The papers made by this review were to help create the best international practices on the creation of fiscal policy and its framework. There were many sections created that were the guideline in creating the counter cyclical policies on the fiscal.
What are the limits and the role of the countercyclical fiscal policies?
According to the distinct analysis, the fiscal policies shall be made between the unrestricted changes of taxes and spending as the response on the automatic stabilizers. The countercyclical will be beneficial on the tax revenue and the unemployment problems of the people that will greatly change the economic activity of the country. There were agreement regarding the role of the fiscal policy on literature about the reduction of output and employment variations issue, there is still no agreement on the Classical economist regarding the fiscal policies.
The International Experiences
There is a widespread of the countercyclical fiscal policies in both developing countries and industrial. This is according to the international evidence pointed out on the survey. There is a poor fiscal discipline when government pressures the people to increase the tax revenue and spends it on interest groups and political constituencies than keeping the revenue for the future and spends it on the countercyclical.
You can read more about this issue over the internet. You can find a copy of the review concerning about this issue.