It has been a traumatic year. As the COVID-19 pandemic spread around the world, hundreds of thousands of people in Latin America and the Caribbean died and the economy spun into crisis. About 7.4% of GDP was lost—the single largest recorded fall in output in a single … [Read more...] about New Report Details the Economic Risks and the Opportunities for Stronger Postpandemic Growth
Macroeconomics and Finance
LIBOR Has Been the Magic Number in Finance for A Long Time, until Now
The London Interbank Offered Rate (LIBOR) is the dominant interest rate benchmark and plays a central role in the daily dynamics of the financial markets. Financial institutions rely on LIBOR to represent their own funding cost and transfer it to the clients. It is used as a reference rate in more than $400 trillion of financial instruments, from retail, like credit … [Read more...] about LIBOR Has Been the Magic Number in Finance for A Long Time, until Now
The False Choice of Renewable Energy
Part of our "behind the scenes" series of posts for our 2020 flagship publication From Structures to Services: The Path to Better Infrastructure in Latin America and the Caribbean Recent news items indicate that in 2020, Chile is experiencing one of the most significant droughts in its history; the province of Córdoba, one of Argentina’s most productive agricultural areas, … [Read more...] about The False Choice of Renewable Energy
Not the Usual Recession: Why Inequality after Covid-19 May Get a Lot Worse
It is tempting to view the severe economic downturn of the Covid-19 pandemic through the same lens as other recessions that have struck Latin American and the Caribbean over the last three decades. Most of those previous events, after all, led to increases in poverty and unemployment, much as the current crisis has done. But when it comes to inequality, one of the region's most … [Read more...] about Not the Usual Recession: Why Inequality after Covid-19 May Get a Lot Worse
Avoiding a New Lost Decade for Latin America and the Caribbean
The Covid-19 pandemic has unleashed a health and economic crisis. Countries are providing exceptional support to families and firms and suffering significant losses in public revenues. Debt ratios are rising. Getting fiscal policy right and maintaining financial stability will be key to ensuring a return to growth and avoid a lost decade in Latin America and the Caribbean. A … [Read more...] about Avoiding a New Lost Decade for Latin America and the Caribbean