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#Trade

Towards Inclusive Growth in Latin America and the Caribbean

December 18, 2019 by Andrew Powell Leave a Comment

Ensuring inclusive growth requires action on multiple fronts for Latin American and the Caribbean.

As 2019 draws to a close, Latin America and the Caribbean faces at least four big challenges. First, growth this year is well below potential. Second, potential growth is low. Third, the region remains subject to large shocks. And fourth, despite recent gains, inequality remains high and aspirations are outstripping the meagre outlook, contributing to protests across the region … [Read more...] about Towards Inclusive Growth in Latin America and the Caribbean

The Psychology of Support for Trade

October 11, 2019 by Ernesto Stein - Razvan Vlaicu Leave a Comment

Global trade Latin America

Is free trade beneficial to Latin America and the Caribbean? Most economists believe it is. Free trade allows countries to specialize in what they do best, developing competitive advantages and leading to greater consumer choice and lower prices. Most citizens seem to agree. An IDB-commissioned poll, included in the cross-regional Latinobarómetro survey, finds popular … [Read more...] about The Psychology of Support for Trade

Mexico: The Elusive Quest for Prosperity

July 26, 2018 by Steven Ambrus Leave a Comment

Problematic policies and institutions have led to an elusive quest for prosperity in Mexico

Imagine a country that does everything that development economics says is right: guarantee macroeconomic stability, maintain an open trade regime and invest in physical capital and education. Now imagine, that this this country suffers anemic growth and has done so for over two decades. What in the world could be wrong? This is the agonizing question facing Mexico and the … [Read more...] about Mexico: The Elusive Quest for Prosperity

A New Look at Real Exchange Rates

March 16, 2018 by João Ayres Leave a Comment

the real exchange rates of developed countries may be significantly tied to commodity prices

The real exchange rate — or the cost of a country’s goods relative to foreign goods — has long been a fundamental measure of the strength of a nation's importers and exporters. Among important commodity exporters in Latin America, it is closely tied to the price of commodities. But commodity prices aren't only essential for Latin American trade. Given their critical role as … [Read more...] about A New Look at Real Exchange Rates

Forthcoming IDB Report: A Mandate to Grow

March 7, 2018 by Andrew Powell - Eduardo Cavallo Leave a Comment

New IDB report calls on Latin America to lift the brakes on growth

Global economic fundamentals appear to be strong. Yet, Latin America and the Caribbean is expected to grow at rather mediocre rates in the coming years. Given recent projections, the region’s share of global GDP will continue to decline. In last year's Latin America and Caribbean Macroeconomic Report, Routes to Growth in a New Trade World, we focused on the benefits of deeper … [Read more...] about Forthcoming IDB Report: A Mandate to Grow

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The blog of the IDB's Research Department shares ideas that matter on public policy and development in Latin America and the Caribbean.

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