Managing Abundance (Eyzaguirre et ali.)

Managing abundance to avoid a bust in Latim America by Nicolás Eyzaguirre, Martin Kaufman, Steven Phillips and Rodrigo Valdés, published by IMF. “Exceptional global circumstances have produced a double bonanza of easy foreign financing and high terms of trade for Latin America (LA), particularly for commodity exporters – favorable conditions that will not last forever. This note explores the sources of these double tailwinds, the problems and vulnerabilities they can engender in LA, and how to build an appropriate policy response.”