Securing Stability and Grwoth in a Shock-Prone region: The Policy Challenge for Latin America.

Latin America is volatile. On this there is not much controversy. But what are the reasons for this volatility? And what are its costs? On these more fundamental questions, there is as yet no consensus. And partly because of this, there is no consensus on the appropriate policy response to macroeconomic volatility in Latine America, and other shock-prone economies. This paper provides new evidence on these contentious issues, and discuss Policy Imnplications for the region.