1945

Recovery and uncertainty in Latin America

Only five years ago the economies of Latin America were still in serious crisis, with widespread macroeconomic imbalances involving large budget deficits and very high inflation and even, in a number of countries, hyperinflation. Imports were tightly compressed in order for the economies to generate the massive trade surpluses needed to service debt, and there was very little by way of external lending or inflows of private capital. Growth was almost zero and net investment barely positive.

Related Subject(s): International Trade and Finance
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