Financial markets are in turmoil with the spread of COVID-19 and its consequences for the global economy. Emerging markets suffer particularly acutely in times of financial uncertainty, as global investment portfolios shift to safer asset classes. This means that the COVID-19 shock is creating a “sudden stop” in capital flows for emerging markets. The costs of sudden stops for … [Read more...] about Latin America has experienced sudden stops in the past. The coronavirus takes the challenge to a new level.
Macroeconomics and Finance
Young Researchers Wanted for Prestigious Fellowship
The Research Department of the Inter-American Development Bank (IDB) invites talented young professionals to apply to its Research Fellowship Program in Washington, D.C. The fellowship, open to candidates with an undergraduate degree in economics, public policy, or a related field, and a strong quantitative background, provides a unique opportunity to collaborate with … [Read more...] about Young Researchers Wanted for Prestigious Fellowship
Towards Inclusive Growth in Latin America and the Caribbean
As 2019 draws to a close, Latin America and the Caribbean faces at least four big challenges. First, growth this year is well below potential. Second, potential growth is low. Third, the region remains subject to large shocks. And fourth, despite recent gains, inequality remains high and aspirations are outstripping the meagre outlook, contributing to protests across the region … [Read more...] about Towards Inclusive Growth in Latin America and the Caribbean
When Inequality is Baked into the System
Hundreds of thousands of protesters have poured into the streets in recent weeks from Chile and Colombia to Lebanon and Iraq. Transport hubs have been destroyed, stores looted, and government institutions attacked. Dozens have been killed. The immediate causes of the protests have been diverse, ranging from price hikes to rumored changes in laws affecting rights and … [Read more...] about When Inequality is Baked into the System
Ensuring that the Gains from Trade are Inclusive and Sustainable
Thirty years ago, as part of their development strategy, and after many years of protectionism, the countries of Latin America and the Caribbean embarked on a process of ambitious trade liberalization. This was only one of many different reforms made in the framework of the Washington consensus. But it was without question the most important one. Tariffs were eliminated, … [Read more...] about Ensuring that the Gains from Trade are Inclusive and Sustainable