Why has the economy of Latin America responded more positively than Asia, Europe, or the United States after being hit by the recent global financial crisis? Three years after the worst of the crisis, Latin America's GDP is 25 percent higher than its precrisis level. José De Gregorio, Governor of the Central Bank of Chile from 2007 to 2011, tells the story of how Latin America has responded to the crisis with a perspective that only an insider can have. De Gregorio focuses on the seven largest economies of the region, Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Venezuela (90 percent of the region's output). He argues that Latin America was resilient because of good macroeconomic policies, strong financial systems, and "a bit of luck."
- Cover
- Praise for "How Latin America Weathered the Global Financial Crisis"
- Copyright
- Dedication
- Contents
- Preface
- List of Board of Directors
- Acknowledgments
- Map
- Chapter 1 Introduction
- Latin America from a Global Perspective
- Latin America Compared with Other Emerging-MarketEconomies
- Was This Crisis Different for Latin America?
- What Explains Latin America’s Resilience?
- Overview of the Book
- Chapter 2 A Favorable International Environment and Effective Monetary and Fiscal Policies
- Good Luck and Terms of Trade
- Controlling Inflation
- Inflation Targeting
- Progress on the Fiscal Front
- Policy Responses during the Global Financial Crisis
- Final Remarks
- Chapter 3 Exchange Rates and International Reserves
- Exchange Rates, Fear of Floating, and Evidence during Crises
- Exchange Rate Pass-Through, Credibility, and Duration ofMisalignments
- Does Low Pass-Through Impair Real Adjustment?
- International Reserves and Exchange Rate Interventions
- International Reserves during the Global Financial Crisis
- Concluding Remarks: Exchange Rates and Global Adjustment
- Chapter 4 Financial Stability
- Causes of the Crisis: Monetary Policy or Financial Fragility?
- Asset Prices, Inflation Targets, and Bubbles in Emerging Markets
- Exchange Rate Volatility and Financial Stability
- Central Banks and Financial Stability
- Interactions between Financial Stability and Price Stability
- Latin American Banks and the Financial Crisis
- Concluding Remarks
- Chapter 5 Capital Flows
- Capital Flows, Current Account, and Exchange Rate: TheBasics
- Capital Inflows and Accumulation of Reserves
- Surges of Capital Inflows
- Gross Flows and Financial Stability
- Capital Controls
- Concluding Remarks
- Appendix 5A
- Chapter 6 From Macroeconomic Policies to Long-Term Growth
- Inequality and Institutions
- Macroeconomic Policies: Virtuous and Vicious Cycles
- Macroeconomic and Financial Policies
- A Final Look at the Region
- References
- About the Author
- Index
- PIIE Publication List
- PIIE Distribution List
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