Event Summary
Spillovers from a global crisis that began in advanced economies pose a severe test to Latin America and the Caribbean region. The good news is that during this decade, countries of the hemisphere have made themselves more resilient—though not immune—by strengthening policy frameworks and reducing homegrown vulnerabilities in public finances and financial systems.
Event Information
When
Thursday, May 21, 2009
2:00 PM to 3:30 PM
Where
Saul/Zilkha Rooms
The Brookings Institution
1775 Massachusetts Ave., NW
Washington, DC
Map
On May 21, the Latin America Initiative at Brookings hosted Nicolás Eyzaguirre, director of the IMF’s Western Hemisphere Department, and Steve Phillips, also of the IMF, as they presented this year’s Regional Economic Outlook: Western Hemisphere report. Improved fundamentals, the report shows, mean that countries are now more able to respond to the external crisis with active policies to boost output and employment and protect the most vulnerable groups. This will help contain the damage from the global crisis and speed the region’s recovery.
Following their remarks, a panel composed of Mauricio Cárdenas, senior fellow and director of the Latin America Initiative; Liliana Rojas-Suarez, senior fellow at the Center for Global Development; and Carlos Vegh, professor of economics at the University of Maryland, evaluated the report’s findings.
Transcript
STEVE PHILLIPS: This is pointing out how the countries have been able to implement countercyclical monetary policies. So . . . instead of hiking interest rates they are able to cut interest rates and taking advantage of the exchange rate and of greater exchange rate flexibility. The great thing about this is that their gamble has not been a gamble. It has paid off. The countries that thought they had the room to cut interest rates and let the exchange rate float are still keeping inflation under control, so it has been quite a success.
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Participants
Introduction
Nicolás Eyzaguirre
Director, Western Hemisphere Department, International Monetary Fund
Panelists
Steve Phillips
Chief, Regional Studies Division, Western Hemisphere Department, International Monetary Fund
Liliana Rojas-Suarez
Senior Fellow, Center for Global Development
Carlos A. Vegh
Professor of Economics, University of Maryland