Abstract

The global crisis that began in advanced economies has sent severe shocks around the world, posing a test to the economies of Latin America and the Caribbean. The good news is that during this decade the region has made itself more resilient to external shocks, by strengthening policy frameworks and reducing vulnerabilities in its public finances and financial systems. These preparations, the report shows, mean that countries are now more able to respond to the external crisis, many for the first time, with active policies to boost output and employment and protect the most vulnerable groups. This will help contain the damage from the global crisis and speed up the region’s recovery.

References

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    • Search Google Scholar
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
  • Acosta, P., C. Calderon, P. Fajnzylber, and H. Lopez, 2007, “What Is the Impact of International Remittances on Poverty and Inequality in Latin America?World Bank Policy Research Working Paper No. 4249 (Washington: World Bank).

    • Search Google Scholar
    • Export Citation
  • Adams R., and J. Page, 2005, “Do International Migration and Remittances Reduce Poverty in Developing Countries?World Development, Vol. 33, No. 10, pp. 16451669.

    • Search Google Scholar
    • Export Citation
  • Adler, G., and E. Cerutti, 2009, “Emerging Market Countries’ Vulnerability to International Banks’ Distress” (unpublished; Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Aiolfi, Marco, Luis Catão, and Allan Timmermann, 2006, “Common Factors in Latin America’s Business Cycles,IMF Working Paper 06/49 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Calvo, S., and C. Reinhart, 1996, “Capital Flows to Latin America: Is There Evidence of Contagion Effects?World Bank Policy Research Working Paper No. 1619 (Washington: World Bank).

    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
  • Chiquiar, Daniel, and Manuel Ramos-Francia, 2005, “Trade and Business-Cycle Synchronization: Evidence From Mexican and U.S. Manufacturing Industries,The North American Journal of Economics and Finance, Vol. 16, No. 2, pp. 187216.

    • 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
  • Leigh, Daniel, 2009, “Macroeconomic Stability and the Role of Fiscal Policy,” in Peru: Selected Issues, IMF Country Report No. 09/41 (Washington: International Monetary Fund). Available via the Internet: www.imf.org/external/pubs/cat/longres.cfm?sk=22669.0.

    • Search Google Scholar
    • Export Citation
  • Maechler, A. M., and L. L. Ong, 2009, “Foreign Banks in the CESE Countries: In for a Penny, in for a Pound?IMF Working Paper 09/54 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Malik, A., and J. Temple, 2006, “The Geography of Output Volatility,CEPR Discussion Paper No. 5516 (London: Centre for Economic Policy Research).

    • Search Google Scholar
    • Export Citation
  • McGuire, Patrick, and Philip Wooldridge, 2005, “The BIS Consolidated Banking Statistics: Structure, Uses and Recent Enhancements,” BIS Quarterly Review (Basel: Bank for International Settlements, September).

    • Search Google Scholar
    • Export Citation
  • McGuire, P., and N. Tarashev, 2008, “Bank Health and Lending to Emerging Markets,” BIS Quaterly Review (Basel: Bank for International Settlements, December).

    • Search Google Scholar
    • Export Citation
  • Pozzolo, Alberto Franco, 2008, “Bank Cross-Border Merger and Acquisitions (Causes, Consequences and Recent Trends),” UNIMOL Economics & Statistics Discussion Paper No. esdp08048 (Campobasso: University of Molise).

    • Search Google Scholar
    • Export Citation
  • Ratha, D., and S. Mohapatra, 2009, “Migration and Development Brief 9: Revised Outlook for Remittance Flows 2009–2011,” Development Prospects Group, World Bank (March).

    • Search Google Scholar
    • Export Citation
  • Rennhack, Robert, and others, forthcoming,Global Financial Regulatory Reform: Implications for Latin America and the Caribbean,Policy Discussion Paper (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Roache, S., 2008, “Central America’s Regional Trends and U.S. Cycles,IMF Working Paper 08/50 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Sosa, Sebastián, 2008, “External Shocks and Business Cycle Fluctuations in Mexico: How Important Are U.S. Factors?IMF Working Paper 08/100 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Tsounta, Evridiki, 2008, “What Attracts Tourists to Paradise,IMF Working Paper 08/277 (Washington: International Monetary Fund).

  • Van Rijckeghem, Caroline, and Beatrice Weder, 2000, “Spillovers Through Banking Centers: A Panel Data Analysis,IMF Working Paper 00/88 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • World Bank, 2008, “The Changing Role of International Banking in Development Finance,” Global Development Finance 2008 (Washington: World Bank).

    • Search Google Scholar
    • Export Citation