Latin America as whole, has suffered from the Debt Crisis of the 1980's and the ensuing macroeconomic imbalances which have culminated in an explosion of domestic debt. This paper, is an attempt to analyse the characteristics of domestic borrowing in Latin America, the problems it has caused, the measures taken to reform public finances and the underlying reasons for the success or failure of fiscal reforms. The paper dwells on the expericnces of four major Latin American countries: namely: Argentina, Brazil, Chile and Mexico.
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