Is the Latin Boom Bound to Fade?

Reflecting on the remarkable strength and breadth of the Latin American economy today, the question often posed by analysts is whether or not the region in some sense is “decoupling” from the business cycle in the U.S. where the threat of a subprime-induced recession looms ever larger. While the issue is obviously a great concern […]

Is Brazil Starting to Grow Faster and More Equitably and, If So, Who Should Get the Credit?

Many analysts, myself included, have raised questions about the appropriateness of including Brazil among the fastest-growing emerging economies, the so-called BRICs. Recently released data from Brazil’s 2006 National Household Income Survey should give all of us some pause for reflection. Coming on top of similar results in recent years, these 2006 data show that household […]

Latin America and the Global Turbulence

At the start of an important week in the markets which will test the Fed’s bold move to lower the discount rate, the risks to Latin America are starting to come into focus.  These would seem to involve, in the short-run, the risk of considerable financial volatility even if we accept (as I do) that […]

Is Latin America Blowing It? The Case of Chile

The present period could be called the best of times for Latin America. The China-commodity boom since 2003, the overall strength of global trade, and the reduced cost of foreign loans are a welcome respite from the late 1990s patterns of “sudden stops” and attendant turmoil. Despite the external improvements, a feeling is widespread in […]

Full “BRIC-hood” At Last?: The Currency Appreciation in Brazil

Many in and outside of Brazil have questioned the customary inclusion of Brazil among the more dynamic emerging markets commonly referred to as BRICs.  After all, the economy’s overall growth performance for decades has paled in comparison to its more glamorous counterpart nations.  Signs are emerging, however, that Brazil could over the next few years […]