public expenditures in general and of social pro-poor expenditures in particular. The policy implication is that reform strategies should focus on identifying the 'wrong' political incentives in public expenditures.'- Ricardo Hausmann, Harvard University, USEduardo 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.This volume is geared toward those interested in the political economy of development and policy reform in general and in Latin America, including academics, policy makers, and the general reader.Contents: Part I: Conceptual Framework; Introduction; 1. Overview: The Current Status and Prospects of the Reform Process; 2. The Political Economy of Macroeconomic Policy Making in Latin America; Part II: Country Narratives and Comparative Economics; 3. Argentina: Blinded by Hindsight - The Economics and Politics of Learning; 4. Brazil: The Market Enhancing Role of Political Economy Factors; 5. Chile: The Right Mix of Policies and Institutions; 6. Colombia: Fairness Perception and the Political Tolerance for Macroeconomic Policy Reform; 7. Costa Rica: The Effectiveness of Political Economy Compromise; 8. Peru: From Macroeconomic Volatility to Credibility Building; References; Index

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