How can emerging markets protect themselves from abrupt shifts in cross-border banking flows? That has been a fundamental question for economic policymakers in recent years, including those entrusted with banking supervision in regions like Latin America and the Caribbean. In a study made available online in May, Gabriel Cuadra and I examine the issue, focusing on how … [Read more...] about Reducing Volatility from Cross-Border Banking Flows
Macroeconomics and Finance
How Latin American Countries Became World Champions of Happiness
Consider two regions: one ranks high in GDP, equality, government transparency, and health care, the other one lags behind, sometimes by a wide margin. Where do you think people feel more upbeat? The answer is anything but intuitive. Many countries in Latin America knock out Western Europe and other advanced economies with their positive energy. In a recent study, Mariano … [Read more...] about How Latin American Countries Became World Champions of Happiness
China’s Dockless Biking Boom and the Lessons for Latin America
They have set off a surge in bike riding, sparked explosive investment, and helped cut air pollution and carbon emissions. But the "dockless" -- or stationless -- bikes that have transformed China's cities also have come with significant social and economic costs. As Latin America prepares to embrace them, it would do well to take heed. That day is coming sooner than later. … [Read more...] about China’s Dockless Biking Boom and the Lessons for Latin America
Latin America Needs Greater Investment and Productivity. This Is Why
As the global economy gains strength and Latin America and the Caribbean recovers from recession, the region is actually falling further behind, continuing to lose its share in global GDP and putting in jeopardy the aspirations of its growing middle class The reasons behind this are complex. But low investment and productivity are fundamental factors. They require significant … [Read more...] about Latin America Needs Greater Investment and Productivity. This Is Why
Boosting Growth in Latin America and the Caribbean
Growth in Latin America and the Caribbean has been disappointing. For commodity exporters, the exceptional 2002-2012 boom boosted investment and relaxed fiscal constraints, but many countries made little progress on improving underlying productivity and their medium-term growth potential. In other countries, particularly some in the Caribbean and Central America, negative … [Read more...] about Boosting Growth in Latin America and the Caribbean