Resilience in Latin America: Lessons from Macroeconomic Management and Financial Policies
IMF Working Papers, December 20, 2013
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- Resilience in Latin America: Lessons from Macroeconomic Management and Financial Policies
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Bibliographic details
- Authors: Jose De Gregorio
- Published: December 20, 2013
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475550214.001
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.
Key findings
- Unprecedented resilience of Latin American countries to the global financial crisis.
- Central factors contributing to good economic performance:
- Sound macroeconomic conditions.
- Ability to undertake an unusual monetary and fiscal expansion.
- Exchange rate flexibility.
- A strong and well--regulated financial system.
- High level of reserves.
- Influence of very high terms of trade (described as "a bit of luck").
- Policy stance: Continued adherence to strong macroeconomic and financial policies is necessary but not sufficient for transition from recovery to sustained growth.
Subjects and keywords (as provided)
- 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