By Myriam Escobar and Andrew Powell In July 2015, Multilateral Development Banks (MDBs), together with the International Monetary Fund (IMF) committed to extend more than $400 billion in financing to developing countries over the next three years for longer term development aims. They also agreed to work more closely with private and public sector partners to mobilize the … [Read more...] about MDBs: Constraining Times
Macroeconomics and Finance
The Problem with Taxing the Rich
It's never easy to get the wealthy to pay their taxes — and Latin America is no exception. Not only do they have the political clout to fight legislation that would increase their contributions relative to low-earners. They can afford top-flight lawyers and accountants to help them maneuver around their income taxes through loopholes and offshore tax havens. As a result, tax … [Read more...] about The Problem with Taxing the Rich
Helping Latin Americans Save
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
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