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

Jose De Gregorio

No 2013/259, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; crisis; exchange rate; banking system; terms of trade; market; Latin America; macroeconomic management; financial policies; resilience; monetary policy; financial collapse; currency exposure; exchange rate depreciation; currencies of emerging market economies; market participant; Eurozone crisis; Emerging and frontier financial markets; Commercial banks; Currencies; Exchange rates; Global; Asia and Pacific; Europe (search for similar items in EconPapers)
Pages: 24
Date: 2013-12-20
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Citations: View citations in EconPapers (17)

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