- Figures (and map)
- Shifting Paradigms in Latin America's Economic Development
- Institutions and the Historical Roots of Latin American Divergence
- Political Institutions, Policymaking, and Economic Policy in Latin America
- The Washington Consensus: Assessing A “damaged Brand”
- From Old to New Developmentalism in Latin America
- Environmental Sustainability
- Taming Capital Account Shocks: Managing Booms and Busts
- Exchange Rate Regimes in Latin America
- Monetary Policy in Latin America: Performance Under Crisis and the Challenges of Exuberance
- Domestic Financial Development in Latin America
- Fiscal Policy in Latin America
- Fiscal Legitimacy, Inequalities, and Democratic Consolidation in Latin America
- Latin America in the World Trade System
- Regional Integration
- The Effects of Trade Liberalization on Growth, Employment, and Wages
- The Recent Commodity Price Boom and Latin American Growth: More than New Bottles for an Old Wine?
- Curse or Blessing? Natural Resources and Human Development
- Foreign Direct Investment in Latin America
- China and the Future of Latin American Economic Development
- Latin America in the Recent Wave of International Migration
- Structural Transformation and Economic Growth in Latin America
- Learning, Technological Capabilities, and Structural Dynamics
- Why Has Productivity Growth Stagnated in Most Latin American Countries Since the Neo-Liberal Reforms?
- Agricultural and Rural Development
- An Energy Panorama of Latin America
- Infrastructure in Latin America
- The Rise and Fall of Income Inequality in Latin America
- Multidimensional Poverty in Latin America: Concept, Measurement, and Policy
- Economic Insecurity and Development in Latin America and the Caribbean
- Employment: The Dominance of the Informal Economy
- Latin American Labor Reforms: Evaluating Risk and Security
- Social Protection in Latin America: Achievements and Limitations
- Social Security Reforms in Latin America
Abstract and Keywords
The performance of emerging economies relative to developed ones has been an important issue in the unfolding of the 2008–9 financial turmoil and the Great Recession. In the case of Latin America, in sharp contrast to periods of turbulence in previous decades, this chapter argues that financial and price stability has been preserved, with impacts on growth that have been less dramatic than in the early 1980s, while monetary policy has reacted more flexibly. The chapter discusses a number of aspects that have contributed to this improved performance during the recent crisis, such as initial economic conditions, especially the fiscal and external positions of the economies in the run-up to the crisis; the evolution of monetary/exchange rate regimes, particularly the shift to inflation targeting and flexible exchange-rate regimes; and structural and institutional aspects such as central-bank independence, reduced domestic financial dollarization, and the strength of fiscal institutions.
Pablo García-Silva, Alternate Executive Director, Southern Cone, International Monetary Fund.
Manuel Marfán is Vice-Governor, Central Bank of Chile, Santiago
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