The IDB’s 2016 Macro Report Time to Act outlines the tough policy conundrum facing the region: low growth to 2020, monetary policy—where it exists—limited by higher inflation and many countries being forced into pro-cyclical fiscal adjustment. What can countries do to boost economic activity, lower the risks of a high debt-low growth spiral and defend the social gains made in … [Read more...] about The Policy Conundrum in Latin America and the Caribbean: Let’s Revisit the Trade Agenda!
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Trade and Regional Integration: What We Don’t Have To Worry About
The policy recommendations of the IDB’s 2016 Macro Report Time to Act include deepening regional trade integration, a long-sought but still largely elusive goal. A casual observer may wonder why that goal matters. Even though the Free Trade Area of the Americas process failed to produce an agreement, Latin America and the Caribbean have fared well until relatively recently and … [Read more...] about Trade and Regional Integration: What We Don’t Have To Worry About
Have Latin American Countries Become More Competitive?
Over the last two years, Latin America has experienced significant movements in nominal exchange rates. Between June 2014 and October 2015, most of the larger countries in the region —including Argentina, Brazil, Colombia, Chile, Peru and Uruguay — saw nominal depreciations of at least 15 percent. The Brazilian Real lost more than 42 percent of its value vis-à-vis the US … [Read more...] about Have Latin American Countries Become More Competitive?
Time to Act: Macroeconomic Report 2016
It’s Time to Act for Latin America and the Caribbean. The region is facing negative growth this year, some countries are facing very difficult economic conditions and others are faced with low growth that will do little to improve living conditions. How did we get here? What does the future hold? The 2016 Latin American and Caribbean Macroeconomic Report argues urgent policy … [Read more...] about Time to Act: Macroeconomic Report 2016
Double-dip of Latin American Exports: a call for diversification
By Paolo Giordano* According to the latest edition of the Trade and Integration Monitor of the IDB, exports from Latin America and the Caribbean fell at an annualized rate of 10.9% in the first six months of 2015 compared to the same period in 2014 - the biggest drop recorded since the trade collapse of 2009. The total for the year is therefore expected to stay in the red, … [Read more...] about Double-dip of Latin American Exports: a call for diversification