Latin America´s great macroeconomics needs careful management to avoid economic bubble forming.
Nicolás Eyzaguirre is Director of the IMF’s Western Hemisphere Department. He was previously Professor of Economics at the University of Chile. From 2000 to 2006 he was Chile’s Finance Minister. He was an IMF Executive Director between 1998 and 2000, having held several senior positions at the Central Bank of Chile in the period 1990–97.
Latin America and the Caribbean’s faster-than-forecast recovery from the global financial crisis requires “careful” macroeconomic measures to avoid the emergence of a bubble, the IMF International Monetary Fund said.
Nicolas Eyzaguirre director of the IMF’s Western Hemisphere department, said there are “incipient,” though not “clear,” signs of a bubble forming in some countries. Speaking to reporters April 30 in Washington, ahead of today’s release of the IMF’s report on the region’s economic outlook, Eyzaguirre said regional stocks and currencies are “on the strong side.”
“Careful macroeconomic management will be critical to mitigate risks from a potential boom/bust cycle fueled by favorable external conditions,” according to the IMF’s report, titled “Taking Advantage of Tailwinds.” READ MORE HERE.