Resilience in Latin America: Lessons from Macroeconomic Management and Financial Policies

Author/Editor:

Jose De Gregorio

Publication Date:

December 20, 2013

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Series:

Working Paper No. 2013/259

Subject:

Commercial banks Currencies Emerging and frontier financial markets Exchange rates Financial crises Financial institutions Financial markets Foreign exchange Money

English

Publication Date:

December 20, 2013

ISBN/ISSN:

9781475550214/1018-5941

Stock No:

WPIEA2013259

Pages:

24

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