Publication

This paper analyzes whether the Bolivian economy has any chance at applying anti-shock policies to cushion the short-term effects of external shocks. It notes that Bolivia's mid-term growth prospects are promising but could be derailed due to social unrest, political instability and external economic shocks. The paper employs a recursive-dynamic CGE model to capture the particular features of the Bolivian economy, to evaluate the effects of external shocks and to test the effectiveness of different policy options.