ABSTRACT
There is general agreement on the major macroeconomic policy goals in Latin America: restoring the economic growth/development rates of the pre-1980s; stabilizing prices, or at least, reducing the inflation rate; increasing employment; achieving a foreign trade balance; stabilizing the exchange rate; and reducing the foreign debt and the rates of poverty. To work toward meeting macroeconomic goals, policymakers are supplied with a number of policy instruments, some of an aggregative nature and some discretionary. On the average, Latin America has experienced higher rates of inflation than the rest of the world. Taxes are a significant way for governments of developing nations to mobilize domestic savings. One of the continuing debates over optimal policies for developing countries is the role of government planning and degree of decision-making control. The role of foreign investment in the development process is a sharply debated subject. One policy approach to the distribution problem has been to concentrate on policies that promote rapid growth.
