By Andrés Fernández, Daniel Hernaiz and Andrew Powell Most of the largest economies in Latin America have adopted inflation targeting . A huge advantage of having such an anchor, and not relying on a fixed exchange rate to curb diverging expectations, is that the exchange rate is then determined by the market and can adjust to shocks. Given the large shocks the region has … [Read more...] about Interest Rates are Falling, But Not So Fast
Daniel Hernaiz is an Economics Senior Specialist at the Southern Cone Department of the Inter-American Development Bank. Born and raised in La Paz, Bolivia, he obtained his undergraduate degree in economics from the Bolivian Catholic University. Before finishing his undergraduate training, he started working on municipal development issues at the Vice-ministry of Popular Participation in La Paz. Later, he worked as project coordinator for the Public-Sector Reform Project funded by the Canadian International Development Agency. After obtaining his M.A. in development economics from the Center for Development Economics at Williams College in Massachusetts, he worked as a macroeconomist at the Economic and Social Policy Analysis Unit of the Bolivian Ministry of Planning. He earned his Ph.D. in Economics from the University of Maryland. He joined the Inter-American Development Bank in 2011.