Managing Abundance to Avoid a Bust in Latin America

Author/Editor: Kaufman, Martin ; Phillips, Steven ; Valdés, Rodrigo ; Eyzaguirre, Nicolas
Publication Date: April 07, 2011
Electronic Access: Free Full text (PDF file size is 662KB).
Use the free Adobe Acrobat Reader to view this PDF file

Summary: The motivation is to help Latin American policymakers deal with two problems of abundance that are now at play: i) those related to easy external financial conditions; and ii) those coming from high commodity export prices. While these phenomena are distinct, note that the latter tends to reinforce and interact with the challenges coming from the former. So the fact that they are happening together now creates a distinct double tailwind situation for Latin America and compounds the policy response challenges. Focusing on Latin America, the paper naturally takes into account the key structural and conjunctural conditions of the region that influence how it will be affected by these global factors (e.g., Latin America’s advanced cyclical positions, very flexible exchange rates, highly open capital account policies, and the structure of its exports, among others).
Series: Staff Discussion Notes No. 11/7
Subject(s): Capital inflows | Capital controls | Latin America | Commodity prices | Current account deficits | Flexible exchange rate policy | Macroprudential Policy | Terms of trade

Author's Keyword(s): Capital inflows | capital controls | Latin America | prudential tools
Notes Full text also available in Spanish
Publication Date: April 07, 2011
ISBN/ISSN: 9781463926557 Format: Paper
Stock No: SDNEA2011007 Pages: 29
US$20.00 (Academic Rate:
US$20.00 )
Publication Date: April 07, 2011
ISBN/ISSN: 978-1-61635-095-6 / 2221-030X Format: A web quality merged PDF
Stock No: SDNET2011007 Pages: 29
Please address any questions about this title to