Latin America's trade relationships have been severely strained by the series of uncoordinated currency depreciations within the region since the Asian Crisis spilled over into Brazil in 1999 and by large swings in G-3 exchange rates. Large depreciations, whether forced by capital markets or...

This chapter presents a comparative analysis of the background, governance and economic impacts of two existing short-term liquidity mechanisms, the Chiang Mai Initiative Multilateralization (CMIM) and the Latin American Reserve Fund (referred to by its better-known Spanish acronym, FLAR - Fondo...