For much of the 1980s and early 1990s, Latin America and the Caribbean was in the throes of hyperinflation. In 1990, for example, 16 of 20 countries in the region had inflation rates above 20%, while in 2018 only three of those countries had inflation above 8%, according to IMF figures. The main ingredients to that success were fiscal reforms, debt negotiations that allowed … [Read more...] about What Brazil Can Teach About Fighting Inflation
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When Too Much External Borrowing to Finance Investment Gets Dangerous
Life is full of people who never save, spend like sailors, and find from one day to the next that they’ve maxed out on their credit cards and must cut back on their lifestyle and even long-term investments like their children’s education. Countries are similar. Nations that don’t save sufficiently and finance investment with borrowing from abroad can suffer catastrophes when … [Read more...] about When Too Much External Borrowing to Finance Investment Gets Dangerous