Countries in Latin America and the Caribbean have sought to develop deep and well-functioning domestic bond markets since the beginning of the 21st century—a reaction in part to the financial crises of the 1990s and their relationship to government borrowing abroad, mainly in foreign currencies. As a result, the outstanding level of marketable public debt issued under domestic … [Read more...] about Developing Domestic Bond Markets for Growth and Stability
This article is part of an effort to make the concepts of our Latin American and Caribbean Macroeconomic Report, which at first sight may seem complex, more accessible to the general public. To explain what the drop in GDP suffered by Latin America and the Caribbean in 2020 as a result of the pandemic means in practical terms, Eric Parrado, Chief Economist and General … [Read more...] about The Impact of Low Economic Growth and Inflation on Households: A Conversation with Eric Parrado, IDB Chief Economist
Since 2020, the economies of the world have been hit by a series of severe shocks, most dramatically the COVID-19 pandemic and the Russian invasion of Ukraine. As a result, after growing around 3.9% last year, Latin America and the Caribbean region now faces considerably lower growth projections for 2023, with private forecasters predicting growth at around 1%. It also … [Read more...] about Preparing the Macroeconomic Terrain for Renewed Growth
Latin America and the Caribbean—like the rest of the world—is facing a challenge like none in its modern history. The coronavirus, with no vaccine or cure to curb it yet, has swept every continent, infecting more than 3.1 million people and killing more than 220,000 as of late April. Without a determined health response, it could have killed as many as 3.2 million people in our … [Read more...] about Policies to Fight the Pandemic in Latin America
The unprecedented conditions created by the spread of the coronavirus call for exceptional policy responses from the regional monetary authorities. Besides traditional tools such as interest rate reductions, central banks have been pursuing unconventional measures to avoid permanent consequences from a transitory, but potentially severe, negative shock. Since the 2008 global … [Read more...] about What Can Central Banks Do to Mitigate the Effects of the Coronavirus?