Latin America is volatile--about two to three times as volatile as the industrial economies. It is more volatile than any region other than Africa and the Middle East. Latin America's access to international financial markets is sporadic, and often disappears just when it would be most valuable.

Latin America in the 1990s remains the most unequal region in the world in terms of income distribution. Yet because of its changing demographics -declining fertility rates and large number of young people entering the workforce- the region now has a unique window of opportunity to reduce the...

Latin America in the 1990s remains the most unequal region in the world in terms of income distribution. Yet because of its changing demographics -declining fertility rates and large number of young people entering the workforce- the region now has a unique window of opportunity to reduce the...

Recent economic developments highlight Latin America's vulnerability to economic and financial turmoil that is triggered by events in distant corners of the globe. The Asian financial crisis that began in 1997 and the more recent Russian crisis have left the region profoundly shaken, and living...

What is the impact of political decentralisation in Latin America? This book considers the problems raised by political decentralisation in the region and identifies the challenges ahead. Political decentralisation tends to devolve a certain amount of financial responsibility to the sub-national...

The initial stages of exchange rate-based stabilizations have been generally characterized by a consumption boom, a deterioration of the trade balance and the current account, and an appreciation of the real exchange rate. It is only at the later stages that the economy falls into recession. Tax...

This paper offers an alternative explanation for t he fall of Argentina's Convertibility Program based on the country's vulnerability to Sudden Stops in capital flows. Sudden Stops are typically accompanied by a substantial increase in the real exchange rate that wreaks havoc in countries that...

This paper considers whether institutional factors, in this instance electoral systems and procedures, affect Latin American countries' fiscal performance as measured by the size of the public sector, fiscal deficits, the size of the public debt, and the degree of procyclality of fiscal policy....

Latin America is growing fast and fundamentals look healthier. Are these achievements here to stay? Strong commodity prices may not last forever and a US recession could have major repercussions in the region. Should countries prepare now for tomorrow's crisis? What is the top-ten list on the...

This working paper advances research on inequality with unique, new data on income distribution in 61 countries, including 20 Latin American countries, to explore the effects of political parties on redistribution. First, consistent with a central, but still contested, assumption of the...