The 1988 Basel I Accord created a level playing field for international banks in terms of a minimum recommended amount of capital.It was probably the most successful financial standard ever conceived. More than 100 countries claimed to have implemented the agreement, and in many countries it was applied to all banks. Basel II was agreed upon in 2004. Many of its 216 pages … [Read more...] about Basel III and Financial Reforms: What Should Emerging Economies Do?
Did Changes Among Firms Reduce Wage Inequality in Latin America?
For a long time, economists believed that inequality in the labor market could be explained fundamentally by differences in skills. Workers who were highly educated, experienced and skilled tended to be rewarded better by the labor market than workers who weren't. Firms were essentially irrelevant in this paradigm. Workers were rewarded for their productivity: It didn't matter … [Read more...] about Did Changes Among Firms Reduce Wage Inequality in Latin America?
Tackling the Vulnerability to Economic Crisis
For Latin Americans, there are few memories as nightmarish as the "lost decade" of the 1980s, with its flagging growth and soaring levels of foreign debt, inflation and unemployment. Today, those days are gone. Dictatorships are no longer the norm. In most of the region, governing institutions have improved, and economic policymaking is generally more responsible, with stricter … [Read more...] about Tackling the Vulnerability to Economic Crisis