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CGD Policy Blogs

 

Is Latin America Ready for the Return of Normal?

New uncertainties come to the fore now that the global economy, after six years of turmoil, is showing signs of a return to a more normal situation, where real interest rates in the United States turn positive and commodity prices stabilize at a somewhat lower level, due to a cooling of red-hot demand from China. How will Latin America, which has been buoyed by capital inflows seeking higher returns, respond to the return of normal?  Will the economic and social progress observed during the past two decades hold?

The Results Are In! Incentives for Improving Health in Argentina

Argentina is a highly decentralized federal country, where more than 70% of public spending on health happens sub-nationally by independent provincial governments. Since budgetary transfers between levels of government have no conditions attached, the federal government has often struggled to influence the efficiency and impact of provincial government spending.

Counter-Cyclical Macroprudential Regulations: What India and Others Could Learn from a Few Latin American Countries

It’s been a tough few months for emerging-market currencies. The top slider, India’s rupee, has fallen 20 percent against the US dollar. The Indonesian rupiah and the Brazilian real have fallen about 15 percent; Turkey’s lira is down about 10. As the currencies fall, so do the countries’ international reserves, creating what’s known in non-technical terms as a really bad situation.

How Committed to Equity are Latin American Governments?

Latin America’s distribution of income and wealth has long been the most unequal in the world—but poverty and inequality have been falling consistently since 2000 in most countries of the region. What has changed in Latin America? Are the region’s governments more committed to equality than in the past? Have their tax and spending policies improved? Which governments are most committed? Which least? What policies and programs have been most effective in redistributing income? Are they sustainable? What is holding Latin America back from faster gains?

A New Liquidity Fund for Latin America -- Liliana Rojas Suarez

In December, members of the Latin American Shadow Financial Regulatory Committee (CLAAF) convened at CGD to discuss global financial and monetary developments affecting Latin America. The CLAAF, which meets here twice a year, usually offers policy and regulatory recommendations for finance ministers. central bankers and financial regulators in the region. This time the committee proposed something quite different: the five-page statement CLAAF issued after two days of deliberation recommended the creation of a new regional financial institution—a Latin American Liquidity Fund, to supplement the efforts of the International Monetary Fund (IMF) when the next global financial crisis hits.

A New Liquidity Fund for Latin America -- Liliana Rojas Suarez

In December, members of the Latin American Shadow Financial Regulatory Committee (CLAAF) convened at CGD to discuss global financial and monetary developments affecting Latin America. The CLAAF, which meets here twice a year, usually offers policy and regulatory recommendations for finance ministers. central bankers and financial regulators in the region. This time the committee proposed something quite different: the five-page statement CLAAF issued after two days of deliberation recommended the creation of a new regional financial institution—a Latin American Liquidity Fund, to supplement the efforts of the International Monetary Fund (IMF) when the next global financial crisis hits.