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
Macroeconomics and Finance
Estimating the Potential Economic Impact of Haiti’s 2021 Earthquake
On August 14, 2021, a 7.2 magnitude earthquake struck Haiti, gravely affecting the Departments of Sud, Grand'Anse, and Nippes. More than 2,200 people were killed, and houses, healthcare facilities and schools were destroyed. Rescue and relief responses were hampered by blocked roads, a 5.8 magnitude earthquake that hit the same area the very next day and subsequent aftershocks. … [Read more...] about Estimating the Potential Economic Impact of Haiti’s 2021 Earthquake
Productivity Growth at the Sectoral Level and the Road to Recovery from COVID-19
The COVID-19 pandemic has inflicted one the largest and most intricate economic disruptions in modern history. Latin America and the Caribbean, with 8% of the world's population but more than 25% of its deaths, was particularly hard hit, and unfortunately, the war against the virus is far from over. Even before the health crisis subsides, however, much work needs to be done. … [Read more...] about Productivity Growth at the Sectoral Level and the Road to Recovery from COVID-19
How New Predictive Models and Timely Data Lead to Better Public Policy Decisions
In recent years, advances in the standardization and statistical treatment of standard variables have allowed greater precision in the reporting of short- and long-term economic activity, including, among others, GDP, inflation, and the unemployment rate. But the application of the complex, technical methodologies required in arriving at those calculations has also delayed the … [Read more...] about How New Predictive Models and Timely Data Lead to Better Public Policy Decisions
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