For the first time in its history, Latin America can benefit from not one but three major engines of world growth. Until the 1980s, the United States was the region's major trade partner. In the 1990s, a second growth engine emerged with the European investment boom in Latin America. Now, at the...

What are the reasons for and the costs of Latin America's volatility? Because there is no consensus on these fundamental questions, there is no consensus on the appropriate policy response to macroeconomic volatility in Latin America, and other shock-prone countries. This paper provides new...