Sometimes we need a little push to do things that we know are good for us. We find a “gym buddy” to somehow commit to work out. Or we bet money with a friend on who will be able to spend a month without smoking. When it comes to saving, these nudges are also important for many, even if they are not aware of it. Previous posts explored the main reasons why people in Latin … [Read more...] about Helping Latin Americans Save
Macroeconomics and Finance
Latin American and Caribbean Macro: Secular Stagflation or (Just) a Painful Transition?
What’s going on in Latin American and Caribbean economies? Growth keeps falling, but unlike the rest of the world, inflation keeps going up (see Figure 1). In this blog I outline two possible views. Policy choices—and what to expect in 2016 and beyond—may depend on the explanation.[1] Some argue that advanced economies have entered a phase of secular stagnation (See Larry … [Read more...] about Latin American and Caribbean Macro: Secular Stagflation or (Just) a Painful Transition?
Five Reasons Why Latin Americans Save Less
Are Latin Americans less prone to save? When compared to regions with similar levels of economic development, why does Latin America fare poorly in terms of saving rates? Though several factors shape saving rates, a few are particularly important in generating these gaps at the household level. In particular, past experiences, psychological traits, and even genes or language … [Read more...] about Five Reasons Why Latin Americans Save Less
Fiscal Procyclicality? Bad Luck or Bad Decisions?
By Leopoldo Avellan and Guillermo Vuletin* Has it ever happened to you that by mid-year, when looking through the household bills you realize that your income is not what you expected, so you have to postpone the car you had planned to buy, give up that vacation you had promised your family, and even change the kids’ school you thought you could afford? Such decisions … [Read more...] about Fiscal Procyclicality? Bad Luck or Bad Decisions?
Double-dip of Latin American Exports: a call for diversification
By Paolo Giordano* According to the latest edition of the Trade and Integration Monitor of the IDB, exports from Latin America and the Caribbean fell at an annualized rate of 10.9% in the first six months of 2015 compared to the same period in 2014 - the biggest drop recorded since the trade collapse of 2009. The total for the year is therefore expected to stay in the red, … [Read more...] about Double-dip of Latin American Exports: a call for diversification