Macroeconomics and Finance

How Latin American Countries Became World Champions of Happiness

Despite many problems, Latin American countries are champions of happiness

Consider two regions: one ranks high in GDP, equality, government transparency, and health care, the other one lags behind, sometimes by a wide margin. Where do you think people feel more upbeat? The answer is anything but intuitive. Many countries in Latin America knock out Western Europe and other advanced economies with their positive energy. […]

China’s Dockless Biking Boom and the Lessons for Latin America

Dockless bikes could solve many problems for Latin America if the regulations are right

They have set off a surge in bike riding, sparked explosive investment, and helped cut air pollution and carbon emissions. But the “dockless” — or stationless — bikes that have transformed China’s cities also have come with significant social and economic costs. As Latin America prepares to embrace them, it would do well to take […]

Latin America Needs Greater Investment and Productivity. This Is Why

Greater investment and productivity could spark growth in Latin America and the Caribbean

As the global economy gains strength and Latin America and the Caribbean recovers from recession, the region is actually falling further behind, continuing to lose its share in global GDP and putting in jeopardy the aspirations of its growing middle class The reasons behind this are complex. But low investment and productivity are fundamental factors. They require […]

Boosting Growth in Latin America and the Caribbean

An IDB reports looks at boosting growth in Latin America and the Caribbean

Growth in Latin America and the Caribbean has been disappointing. For commodity exporters, the exceptional 2002-2012 boom boosted investment and relaxed fiscal constraints, but many countries made little progress on improving underlying productivity and their medium-term growth potential. In other countries, particularly some in the Caribbean and Central America, negative shocks, combined with a lack […]

Minimum Wages and the Fight Against Inequality

Fighting inequality with minimum wages depends on gauging the circumstances and timing

Many policymakers say minimum wage hikes are crucial to reducing inequality. They look at Latin America and see abundant evidence, including the fact that in various countries large minimum wage increases during the commodity boom of the 2000s coincided with large inequality declines. There is certainly some truth to the idea. Minimum wage increases during times […]

U.S. Tax Reform: Challenges for Latin America and the Caribbean

The U.S. tax reform could reduce tax receipts in Latin America and the Caribbean

The massive U.S. reform of corporate taxation that slashed rates from 35% to 21% seeks to increase investment, create jobs, boost wages and spur growth within the United States[1]. But it will unquestionably have global impacts, with likely reverberations for Latin America and the Caribbean. The United States is the world’s largest economy and the […]

Prestigious Fellowship for Young Researchers Is Accepting Applications

recent graduates can apply now to the IDB's prestigious fellowship

The Research Department of the Inter-American Development Bank (IDB) is accepting applications for its Research Fellow Program. The program provides an ideal opportunity for recent graduates and young professionals interested in working with leading economists on issues related to sustainable and equitable development in Latin America and the Caribbean, including in the areas of labor, […]

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