They have risen bit by bit. But since the financial crisis in 2008, the Fed has kept interest rates in the United States exceedingly low. Now with healthier economic growth and employment in the United States, that may be changing, and Latin American countries need to be on their guard. Latin America's major economies have accumulated large amounts of foreign corporate debt … [Read more...] about Dealing with Corporate Debt and Rising Interest Rates
Politics and Institutions
Guatemala: The Crisis of Rule of Law and a Weak Party System
In mid-2015, tens of thousands of ordinary Guatemalans poured into the streets to protest against a multimillion-dollar corruption scheme at the highest levels of government and demand reform. By September, key ministers and advisers had been fired. The nation's president sat in jail. But today, two years after that euphoric demonstration of people power, little has changed in … [Read more...] about Guatemala: The Crisis of Rule of Law and a Weak Party System
The FinTech Boom: China vs Latin America
Over the last five years, a new wave of upstarts has burst the confines of traditional finance. These are far from the hallowed institutions of classical pillars and marble. Rather they are children of Silicon Valley, exploiting the latest in digital technologies to offer everything from online shopping and payments to lending and wealth management. Known collectively as … [Read more...] about The FinTech Boom: China vs Latin America
Behavioral Economics and the Messaging That Works
"Nothing can be said to be certain, except death and taxes," said the United States' Benjamin Franklin. And few things are less pleasurably anticipated. But at least when it comes to taxes, the avoidance can make running a government especially hard. Behavioral economics, with its psychological insights into how information can be used to change citizens’ beliefs and … [Read more...] about Behavioral Economics and the Messaging That Works
Macroeconomic Challenges for Latin America and the Caribbean
As the October 2017 meetings in Washington wind down, the good news is that Latin America and the Caribbean is out of recession and set to grow at 1.2% this year. Only three countries (Suriname, Trinidad and Tobago and Venezuela—of the 26 borrowing IDB members) will post negative growth, as opposed to seven countries last year (the other four in recession last year were … [Read more...] about Macroeconomic Challenges for Latin America and the Caribbean