Latin America, from boom to crisis: Macroeconomic policy challenges

This article analyses the most recent phase of growth in Latin America, lasting from 2003 to late 2008, and the way the different policies applied in this period lessened its countries’ vulnerability and gave them greater macroeconomic policy space to confront the international crisis than in other negative shocks of the past. In addition, it briefly surveys the main countercyclical fiscal, monetary, financial and exchange-rate policy measures applied in the region’s economies to mitigate and reverse the effects of the crisis. It concludes by discussing post-crisis macro policy challenges in the region.