Comentario N° 3107-2015-EMECEP/R: "Tough Choices as Well as Opportunities for Latin America"

Fecha de publicación: Jul 31, 2015 4:44:20 PM

"Despite the challenges posed by the ongoing economic slowdown in Latin America, the current difficulties may also open up new opportunities for tackling deep-seated problems, participants said at a conference on Latin America." (IMF Survey)

COMMENT: A really tough decision. A flexible exchange rate (C. Reinhart) vs. the pursuit of structural reforms (J. Levy) Personally, I’d go for the reforms that have long-term results such as the improvement of education quality, infrastructure investment and diversification of production and exports. In a cost-benefit analysis, the advantages outweigh the disadvantages in many ways. Although the cost of a flexible exchange rate is zero, it may have volatile and uncertain implications. (L. PALACÍN).