Abstract

The impact of the global financial crisis and recession on the Latin America and Caribbean region was substantial, but the worst is over for most countries. The region avoided falling into a crisis of its own, performing relatively well amid strong external shocks. Many countries have now returned to growth. The region now faces the challenge of adapting to a new global environment that will not be as favorable as in the past. The latest edition of the report explores the lessons and policy agenda emerging from the recent performance of the Latin America and Caribbean region, drawing also on the broader international experience. Published biannually in May and October.

References

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    • Export Citation
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    • Search Google Scholar
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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
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    • Search Google Scholar
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    • Search Google Scholar
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    • Search Google Scholar
    • Export Citation
  • Swiston, Andrew, and Tamim Bayoumi, 2008, “Spillovers Across NAFTA,” IMF Working Paper 08/3 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Talvi, Ernesto, and Carlos Végh, 2005, “Tax Base Variability and Procyclical Fiscal Policy,” Journal of Development Economics, Vol. 78, pp. 15690.

    • Search Google Scholar
    • Export Citation
  • Vladkova-Hollar, Ivanna, and Jeromin Zettelmeyer, 2008, “Fiscal Positions in Latin America: Have They Really Improved?IMF Working Paper 08/137 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Aizenman, Joshua, Michael Gavin, and Ricardo Hausmann, 2000, “Optimal Tax and Debt Policy with Endogenously Imperfect Creditworthiness,” Journal of International Trade and Economic Development, Vol. 9, No. 4, pp. 36795.

    • Search Google Scholar
    • Export Citation
  • Barrera, Natalia, Marcello Estevão, and Geoffrey Keim, 2009, “United States—U.S. Potential Growth in the Aftermath of the Crisis,” in United States: Selected Issues, IMF Staff Country Report No. 09/229 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Calvo, Guillermo, Leonardo Leiderman, and Carmen Reinhart, 1996, “Inflows of Capital to Developing Countries in the 1990s,” Journal of Economic Perspectives, Vol. 10, No. 2, pp 12339.

    • Search Google Scholar
    • Export Citation
  • Celasun, Oya, 2009, “United States—Spillovers from U.S. Federal Debt Issuance: The Case of Emerging Market Sovereign Borrowing,” in United States: Selected Issues, IMF Staff Country Report No. 09/229 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Corbacho, Ana, and Gerd Schwartz, 2007, “Fiscal Responsibility Laws,” in Promoting Fiscal Discipline, ed. by M. Kumar and T. Ter-Minassian (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Dabán, Teresa, Enrica Detragiache, Gabriel Di Bella, Gian Maria Milesi-Ferretti, and Steven Symansky, 2003, Rules-Based Fiscal Policy in France, Germany, Italy, and Spain, IMF Occasional Paper No. 225 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Davis, Jeffrey, Rolando Ossowski, and Annalisa Fedelino, 2003, Fiscal Policy Formulation and Implementation in Oil-Producing Countries (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Di Bella, Gabriel, 2008, “A Stochastic Framework for Public Debt Sustainability Analysis,” IMF Working Paper 08/58 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Engen, Eric, and Glenn Hubbard, 2004, “Federal Government Debt and Interest Rates,” NBER Macroeconomics Annual 2004, pp. 83138 (Cambridge, Massachusetts: National Bureau of Economic Research).

    • Search Google Scholar
    • Export Citation
  • Gavin, Michael, and Roberto Perotti, 1997, “Fiscal Policy in Latin America,” NBER Macroeconomics Annual 1997, pp. 1172 (Cambridge, Massachusetts: National Bureau of Economic Research).

    • Search Google Scholar
    • Export Citation
  • Hausmann, Ricardo, and Eduardo Fernández-Arias, 2000, “Foreign Direct Investment: Good Cholesterol?IDB Research Department Working Paper No. 417 (Washington: Inter-American Development Bank).

    • Search Google Scholar
    • Export Citation
  • Horton, Mark, Manmohan Kumar, and Paolo Mauro, 2009, The State of Public Finances: A Cross-Country Fiscal Monitor, IMF Staff Position Note 09/21 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Ilzetzki, Ethan, and Carlos Végh, 2008, “Procyclical Fiscal Policy in Developing Countries: Truth or Fiction?NBER Working Paper No. 14191 (Cambridge, Massachusetts: National Bureau of Economic Research).

    • Search Google Scholar
    • Export Citation
  • International Monetary Fund (IMF), 2005, “Information Note on Modifications to the Fund’s Debt Sustainability Assessment Framework for Market Access Countries” (Washington).

    • Search Google Scholar
    • Export Citation
  • International Monetary Fund (IMF), 2007, Regional Economic Outlook: Westerm Hemisphere (Washington, November).

  • International Monetary Fund (IMF), 2008, World Economic Outlook (Washington, October).

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  • International Monetary Fund (IMF), 2009, World Economic Outlook (Washington, October).

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    • Search Google Scholar
    • Export Citation
  • Laubach, Thomas, 2009, “New Evidence on the Interest Rate Effects of Budget Deficits and Debt,” Journal of the European Economic Association, Vol. 7, No. 4, pp. 85885.

    • Search Google Scholar
    • Export Citation
  • Levchenko, Andrei, and Paolo Mauro, 2006, “Do Some Forms of Financial Flows Help Protect from Sudden Stops?IMF Working Paper 06/202 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Österholm, Pär, and Jeromin Zettelmeyer, 2007, “The Effect of External Conditions on Growth in Latin America,” IMF Working Paper 07/176 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Porzecanski, Arturo, forthcoming, “Latin America: The Missing Financial Crisis,” ECLAC Working Paper (Washington: Economic Commission for Latin American and the Caribbean).

    • Search Google Scholar
    • Export Citation
  • Reinhart, Carmen M., Kenneth S. Rogoff, and Miguel A. Savastano, 2003, “Debt Intolerance,” Brookings Papers on Economic Activity, Vol. 34 (2003-1), pp. 174 (Washington: Brookings Institution).

    • Search Google Scholar
    • Export Citation
  • Romeu, Rafael, 2008, “Vacation Over: Implications for the Caribbean of Opening U.S.-Cuba Tourism,” IMF Working Paper 08/162 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Romeu, Rafael, and Andrew Wolfe, forthcoming, “Caribbean Tourism: Standing Against a Tide of OECD Unemployment,” IMF Working Paper (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Schmitt-Grohe, Stephanie, 1998, “The International Transmission of Economic Fluctuations: Effects of U.S. Business Cycles on the Canadian Economy,” Journal of International Economics, Vol. 44, No. 2, pp. 25787.

    • 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
  • Spilimbergo, Antonio, Steven Symansky, and Martin Schindler, 2009, Fiscal Multipliers, IMF Staff Position Note 09/11 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Swiston, Andrew, and Tamim Bayoumi, 2008, “Spillovers Across NAFTA,” IMF Working Paper 08/3 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Talvi, Ernesto, and Carlos Végh, 2005, “Tax Base Variability and Procyclical Fiscal Policy,” Journal of Development Economics, Vol. 78, pp. 15690.

    • Search Google Scholar
    • Export Citation
  • Vladkova-Hollar, Ivanna, and Jeromin Zettelmeyer, 2008, “Fiscal Positions in Latin America: Have They Really Improved?IMF Working Paper 08/137 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation