A man stands in front of the Impostometro (Taxometer), which displays the amount of taxes paid by citizens of Brazil, in downtown Sao Paulo city (REUTERS/Nacho Doce).
Opinion
Tax-Policy Procyclicality
October 1, 2013, Carlos A. Vegh and Guillermo Vuletin
Carlos Vegh and Guillermo Vuletin examine recent research showing that tax policy tend to be procyclical in developing countries and acyclical in developed countries, and that while some developing countries have managed to escape the procyclical fiscal policy trap, some developed nations – notably Eurozone members – are falling into it.