Mexico needs a counter-cyclical fiscal policy; a fiscal council would help

Summary

Considering the current circumstances of almost zero economic growth, there is no need to aim for a primary surplus similar to the one planned for this year (1% of GDP) in 2020. If properly reported, a smaller primary surplus may be welcomed by the markets.

Key points

• Key points:
• Undoubtedly, it is imperative that Mexico maintains fiscal discipline
• The key to implementing such a policy is that it must be credible

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