"The authors examine the empirical evidence in support of the poverty trap view of underdevelopment. They calibrate simple aggregate growth models in which poverty traps can arise due to either low saving or low technology at low levels of development. They then use these models to assess the...

The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and...

The resumption of economic growth in Latin America is predicated on the successful restoration of fiscal discipline and stabilization. In restoring fiscal discipline, the mix of policy instruments should aim at maximizing efficiency in the use of domestic and foreign resources. Poverty...

The global crisis is now in the rear view mirror and world growth is being restored. In sharp contrast with past episodes of global turmoil, this time the recovery is led by the periphery, specifically by the larger and more dynamic emerging markets (Brazil, China, India, South Korea, Malaysia,...

This semiannual report examines short-run and long-run challenges for economic growth for the Latin America and the Caribbean (LAC) region in the aftermath of the 2008-09 global financial crisis. The first part of this report provides an overview of recent economic developments, including an...

Important findings of recent studies based on a macroeconomic perspective include the need to take actions aimed at further increasing the region's integration into the global economy while at the same time deepening Latin America's relatively shallow financial markets. This study complements...

Important findings of recent studies based on a macroeconomic perspective include the need to take actions aimed at further increasing the region's integration into the global economy while at the same time deepening Latin America's relatively shallow financial markets. This study complements...