Abstract

The ongoing global turmoil represents a confluence of negative shocks for Latin America and the Caribbean: a freeze in global credit markets, weaker external demand, and lower commodity prices. But the region is expected to deal with these global shocks better than in previous crises, reflecting progress made in improving macroeconomic fundamentals over the past decade. Still, there are a number of downside risks going forward. Against this uncertain background, the report discusses the implications of the global financial crisis for the regional outlook and the corresponding challenges facing policymakers.

References

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    • Search Google Scholar
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Grappling with the Global Financial Crisis
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    • Search Google Scholar
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    • Export Citation
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    • Export Citation
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    • Export Citation
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    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
  • Chue, Timothy K., E. Cook, David 2008, “Emerging Market Exchange-Rate Exposure,Journal of Banking and Finance, Vol. 32 (No. 7), pp. 13491362.

    • Search Google Scholar
    • Export Citation
  • Corseuil, C., Cortez Reis, M. Mendonça, R. Paes de Barros, R. 2000, “Poverty, Inequality, and Macroeconomic Instability,” Instituto de Pesquisa Econômica Aplicada, Texto para Discussão No. 750 (Rio de Janeiro).

    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
  • Deaton, Angus, Zaidi, Salman 2003, Guidelines for Constructing Consumption Aggregates for Welfare Analysis (Washington: World Bank).

  • De Brun, Julio, Gandelman, Néstor Barbieri, Eduardo 2003, “Investment and Financial Restrictions at the Firm Level in Uruguay,” Chapter 8 in Credit Constraints and Investment in Latin America, ed. by Arturo Galindo and Fabio Schiantarelli (Washington: Inter-American Development Bank).

    • Search Google Scholar
    • Export Citation
  • de la Torre, Augusto, Gozzi, Juan Schmukler, Sergio 2007, “Capital Market Development: Whither Latin America?Policy Research Working Paper No. 4156 (Washington: World Bank).

    • Search Google Scholar
    • Export Citation
  • Dessus, Sebastien, Herrera, Santiago de Hoyos, Rafael 2008, “The Impact of Food Inflation on Urban Poverty and Its Monetary Cost: Some Back-of-the-Envelope Calculations,Policy Research Working Paper No. 4666 (Washington: World Bank).

    • Search Google Scholar
    • Export Citation
  • Dominguez, Kathryn, Tesar, Linda 2006, “Exchange Rate Exposure,Journal of International Economics, Vol. 68 (No. 1), pp. 188218.

    • Search Google Scholar
    • Export Citation
  • Easterly, W., Fischer, S, 2004, “Inflation and the Poor,Journal of Money, Credit and Banking, Vol. 33, No. 2, pp. 160178.

  • Echeverry, Juan Carlos, Fergusson, Leopoldo Steiner, Roberto Aguilar, Camila 2003, “Dollar Debt in Colombian Firms: Are Sinners Punished During Devaluations? Emerging Markets Review, Vol. 4 (December), pp. 417449.

    • Search Google Scholar
    • Export Citation
  • Fazzari, Steven M., Glenn Hubbard, R. C. Petersen, Bruce Blinder, Alan S. M. Poterba, James 1988, “Financing Constraints and Corporate Investment,” Brookings Papers on Economic Activity: 1, Brookings Institution, pp. 141206.

    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
  • Gouvea, S., Minella, A. N. Souza-Sobrinho, R. Santos, Sugahara, T. 2008, “SAMBA: Stochastic Analytical Model with Bayesian Approach for the Brazilian Economy” (unpublished).

    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
  • Hayashi, Fumio, 1982, “Tobin’s Marginal q and Average q: A Neoclassical Interpretation,Econometrica, Vol. 50, No. 1, pp. 21324.

    • Search Google Scholar
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