It is clear watching the projections of the IMF that South American economies will suffer more than expected from the current crisis. This despite the fact that they are doing everything possible both from monetary policy as the Prosecutor to counteract the negative impact of it. A reflection which I believe necessary to perform is that both Latin American economies that have brought forward healthy economic policies such as those that are not, hard hit by the crisis. Of course, that there is a difference between the two. Those economies that have been carrying forward sound and consistent policies in the long term, will suffer less and watched an early restoration of its economic growth. A related site: Koch mentions similar findings.
Meanwhile, while the crisis continues to affect the region: what can Latin American countries do? The negative prospects for growth in the world’s major economies represent a serious blow to the region, to which such a situation difficult to him his recovery. The only alternative they have to mitigate the effects of the crisis is to continue resorting to monetary and fiscal policy expansionary and to regional cooperation. On monetary policy, economies should take care that it does not generate negative effects on exchange rate stability or to generate a negative effect on the flow of capital, so it probably find limits to their action in the management of its benchmark interest rate. This will be necessary to achieve greater impact on the real economy, work more intensely on other mechanisms to achieve the financial system to generate the necessary credit to recover the strength of domestic demand. Regional cooperation is a key element to attenuate the effects of the crisis in Latin America. This is a bad time to think about increasing protectionism among the countries of the region. Does it possible that countries in the region can move forward in cooperation agreements to expand intra-regional trade as a response to the?