Understanding Differences in Growth Performance in Latin America and Developing Countries between the Asian and the Global Financial Crises
Latin American performance during the global financial crisis was unprecedented. Many developing and emerging countries successfully weathered the worst crisis since the Great Depression. Was it good luck? Was it good policies? This paper compares growth during the Asian and global financial crises. It finds that a looser monetary policy played an important role in mitigating crisis. It also finds that higher private credit, more financial openness, less trade openness, and greater exchange rate intervention worsened economic performance. Better macroeconomic management was key to good economic performance, which is confirmed by our analysis of Latin American countries. Finally, there is also evidence for the sample of 31 emerging markets that high terms of trade had a positive impact on resilience.
Year of publication: |
2014
|
---|---|
Authors: | Alvarez, Roberto ; Gregorio, José De |
Published in: |
IMF Economic Review. - Palgrave Macmillan, ISSN 2041-4161. - Vol. 62.2014, 4, p. 494-525
|
Publisher: |
Palgrave Macmillan |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Export Mix Changes and Firm Performance: Evidence from Chile
Alvarez, Roberto, (2014)
-
Access to Banking Finance and Exporting
Alvarez, Roberto, (2014)
-
Does Competition Spur Innovation in Developing Countries?
Alvarez, Roberto, (2014)
- More ...