Recent economic developments highlight Latin America's vulnerability to economic and financial turmoil that is triggered by events in distant corners of the globe. The Asian financial crisis that began in 1997 and the more recent Russian crisis have left the region profoundly shaken, and living...

This paper reviews and contributes to the policy debate on the issue of saving in Latin America, presenting an alternative perspective on the relationship between saving and growth, saving and inflation stabilization and structural reform, and saving and capital flows.