Resilience in Latin America: Lessons from Macroeconomic Management and Financial Policies
December 20, 2013
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Summary
This paper analyzes the unprecedented resilience of Latin American countries to the global financial crisis. It argues that sound macroeconomic conditions, which allowed an unusual monetary and fiscal expansion, exchange rate flexibility, a strong and well--regulated financial system, high level of reserves, and a bit of luck coming from very high terms of trade, were central to good economic performance. Persevering along the road of strong macroeconomic and financial policies is necessary, but not sufficient, to go from recovery to sustained growth.
Subject: Commercial banks, Currencies, Emerging and frontier financial markets, Exchange rates, Financial crises, Financial institutions, Financial markets, Foreign exchange, Money
Keywords: Asia and Pacific, banking system, Commercial banks, crisis, Currencies, currencies of emerging market economies, currency exposure, Emerging and frontier financial markets, Europe, Eurozone crisis, exchange rate, exchange rate depreciation, Exchange rates, financial collapse, financial policies, Global, Latin America, macroeconomic management, market, market participant, monetary policy, resilience, terms of trade, WP
Pages:
24
Volume:
2013
DOI:
Issue:
259
Series:
Working Paper No. 2013/259
Stock No:
WPIEA2013259
ISBN:
9781475550214
ISSN:
1018-5941
