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This paper assesses the vulnerability of Latin American and Caribbean (LAC) economies to external crises. It shows that while the average LAC economy has made significant strides to reduce vulnerability to crises to its historical minimum, there is still considerable room for improvement,...

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Current account deficits and capital flows in East Asia and Latin America : are the nineties different from the early eighties?

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López Marmolejo, Arnoldo; Ventosa-Santaulària, Daniel - 2018

Over the last three decades, Mexico’s macroeconomic policy has been driven by a sound orthodox strategy: an open … economy via many trade agreements signed since the mid-1980s, a nominal exchange rate under a flexible regime since 1994 … between the exchange rate and prices in Mexico and the US (its main commercial partner), there are other forces affecting the …

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Financial frictions and export dynamics in large devaluations

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