#Inflation

When Central Bank Autonomy Makes All the Difference

Central Bank autonomy can make all the difference for controlling inflation and providing macroeconomic stability

Since the late 1990s, a broad reform movement has swept Latin America, aimed at granting independence to central banks and freeing them from government pressure to print money to finance government spending. Laws have been passed and constitutions changed to allow independent central banks to focus on the fight against inflation. A more complicated case […]

What Are the Antidotes to Sudden Stops?

Sudden stops can be less severe when local investors bring their foreign assets home

Policymakers in emerging economies have long suffered sudden stops, those paralyzing episodes in which foreign credit dries up. Such episodes can cause painful domestic adjustments that exact significant losses in GDP. But not all sudden stops are equal, and they do not all inflict the same amount of pain. Take the case of Latin America. […]

Macroeconomic Challenges for Latin America and the Caribbean

Macroeconomic challenges loom for Latin America and the Caribbean despite its emergence from recession

As the October 2017 meetings in Washington wind down, the good news is that Latin America and the Caribbean is out of recession and set to grow at 1.2% this year. Only three countries (Suriname, Trinidad and Tobago and Venezuela—of the 26 borrowing IDB members) will post negative growth, as opposed to seven countries last […]

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