The COVID-19 pandemic has battered Latin American and Caribbean economies. Due to its large informal sectors, weak health systems, and fiscal restrictions, the region’s economy has been hit harder than any other declining by 7% last year—the largest GDP contraction since 1821. But unlike previous crises, where problems originated or were exacerbated in the financial sector, … [Read more...] about FINLAC: A New Initiative on Financial Inclusion to Boost Economic Recovery and Transform Lives
Inflation and Its Impact on the Poor in the Era of COVID-19
Inflation has become a growing concern for central banks in Latin America and the Caribbean. The recovery in economic activity was stronger than expected in the first months of 2021, reflecting the stimulus that governments deployed to mitigate the effects of the pandemic and higher mobility and lower containment measures. However, inflation and inflation expectations in the … [Read more...] about Inflation and Its Impact on the Poor in the Era of COVID-19
A Critical Moment for Central Bank Autonomy
Central banks in Latin America and the Caribbean have undoubtedly been part of the solution to our current crisis. Their prompt and effective reactions were made possible by the hard-won credibility that they gained in recent years. Behind those gains is the autonomy delegated to them to formulate and implement monetary policy to achieve their primary objective of maintaining … [Read more...] about A Critical Moment for Central Bank Autonomy
The New GDLab Takes on Discrimination and Inequality
Latin America and the Caribbean is one of the most unequal regions of the world, with the richest 10% of the population earning 22 times more than the poorest 10%. Inequalities in the region stem in part from cultural origin, gender, ethnicity, and sexual orientation and are deeply rooted in history and social norms. While poverty-reduction policies that target income … [Read more...] about The New GDLab Takes on Discrimination and Inequality
How the Fall in Remittances During the Pandemic Threatens Regional Wellbeing
Remittances, transfers from expatriate workers to family and friends in their home countries, are a driving force in the reduction of poverty, greater financial inclusion and economic growth. They are especially critical to many countries in Latin America and the Caribbean. But as Covid-19 delivers devastation to much of the global economy, with GDP forecasts for 2020 … [Read more...] about How the Fall in Remittances During the Pandemic Threatens Regional Wellbeing