With the first signs of decelerating inflation in the United States, countries in Latin America and the Caribbean are probably asking themselves when borrowing costs will fall again. Lower inflation rates in the US, after all, could allow the Federal Reserve to end its cycle of rising interest rates sooner than expected and start eventually reducing the Fed Funds Rate (its … [Read more...] about US Interest Rates and the Cost of Borrowing for Emerging Economies
Teaching Teachers to Boost Early Literacy
We all remember a favorite teacher from school, often a teacher who taught us to read and write and introduced us to the world of literacy. Literacy, after all, is part of the journey to knowledge in all subjects, and is crucial for our future health, political participation, and professional success. It is hardly surprising that we would remember with fondness those teachers … [Read more...] about Teaching Teachers to Boost Early Literacy
Implications of a New Global Financial Landscape for the Southern Cone
Global financial markets are at a crossroads, subject to increased short-term uncertainty as well as structural shifts, both of which pose risks to the macroeconomic and development outlook of emerging economies. To start with, central banks around the world are aggressively tightening monetary policy to fight inflation. This has complex ramifications for exchange rate … [Read more...] about Implications of a New Global Financial Landscape for the Southern Cone
Gender Bias and the Electoral Incentives of Female Politicians
Researchers have documented that female leaders tend to make different policy decisions than male leaders, especially in developing countries. They have been shown, for instance, to be less prone to corruption than men and to invest more in certain public goods, like health and education. But less is known about why female leaders make different choices. One possible … [Read more...] about Gender Bias and the Electoral Incentives of Female Politicians
Persistent Fiscal Deficits May Lead to Disaster for Latin America and the Caribbean
Latin America and the Caribbean faces a punishing economic landscape. Fiscal deficits and debt levels have risen as a consequence of the COVID-19 pandemic and the Russian invasion of Ukraine, and with monetary policy tightening in the United States and Europe, the era of cheap and easy financing is over. In this ever more thorny environment, the region needs to urgently … [Read more...] about Persistent Fiscal Deficits May Lead to Disaster for Latin America and the Caribbean