Includes bibliographical references (p. 220-267) and indexes.

Overview : the current status and prospects of the reform process -- The political economy of macroeconomic policy making in Latin America -- Argentina : blinded by hindsight - the economics and politics of learning -- Brazil : the market enhancing role of political economy factors -- Chile : the right mix of polices and institutions -- Colombia : fairness perception and the political tolerance for macroeconomic policy reform -- Costa Rica : the effectiveness of political economy compromise -- Peru : from macroeconomic volatility to credibility building.

Eduardo Wiesner's book makes an important contribution to the understanding of development by blending together the interdependent issues of (i) macroeconomic performance and volatility, (ii) equity and distributive justice, (iii) fiscal deficits and the redistributive effectiveness of social public expenditures, and (iv) the demand for the 'right' institutions and for policy reform in Latin America. It does this by examining recent macroeconomic crises from a political economy perspective, and finds that information is the critical algorithm that links together the demand for macroeconomic stability, macroeconomic performance and, ultimately, distributive justice.