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This report investigates how these problems [déficit and decentralization] arose in Argentina and Brazil as they sought to decentralize in the 1980s and how each country dealt with them. We seek to understand the instit...

In the 1980s, Argentina and Brazil faced similar problems, with subnational deficits adding to excess public deficits and high inflation. In the 1990s both countries continued with fiscal decentralization and with the st...