Posted on September 21, 2016 by iMFdirect
By Marcello Estevão and Greetje Everaert
Version in Español (Spanish)
Borrowing and saving in foreign currencies—so-called dollarization—seem like a rational response by citizens in some emerging market economies to financial crises and runaway inflation. But dollarization usually persists many years after the problems that triggered it are alleviated and limits the effect that central banks can have on economic activity and inflation. Continue reading
Filed under: International Monetary Fund, South America, trade | Tagged: dollarization, exchange rate, IMF, investment, Peru | Leave a comment »
Posted on January 4, 2012 by iMFdirect
By Nicolás Eyzaguirre
(Version in Español, Português)
A few days after the first sunrise of 2012 kissed the shores of Latin America, it is natural to ask: What does the New Year hold for the region’s economies, especially with Europe still under stress?
For sure, a dimmer economic environment, here and abroad. Growth has softened in the larger countries of the region. Looking North, the United States is growing a bit more, but elsewhere activity is softening, including in China—an increasingly important customer for the region’s commodities.
Perhaps more importantly, global financial markets are still strained, because many questions about advanced economies remain unanswered: Continue reading
Filed under: Economic Crisis, Economic outlook, Emerging Markets, Europe, Finance, Financial Crisis, growth, International Monetary Fund, Latin America | Tagged: balance sheets, banking assets, commodity prices, confidence, dollarization, fiscal policy, global financial crisis, global financial markets, IMF, iMFdirect, International Monetary Fund, liquidity conditions, monetary policy, Nicolás Eyzaguirre, weak growth, year ahead | 5 Comments »
Posted on June 7, 2010 by iMFdirect
By Masood Ahmed
The global financial crisis has led to mounting stress in the banking systems of most countries in the Caucasus and Central Asia. Private sector credit growth has slowed sharply and even turned negative in real terms in a number of countries, compared with the dramatic increases, ranging from 40 to 80 percent in the period immediately prior to the crisis. The credit slowdown is weighing on economic activity and having policymakers seek ways to restore it, thereby laying the foundation for a resumption in high and sustainable economic growth.
Filed under: Asia, Economic Crisis, Financial Crisis, IMF | Tagged: balance sheets, banking systems, Caucasus, Central Asia, credit growth, currency risk, dollarization, Kazakhstan, nonperforming loans, remittances, Tajikistan | 4 Comments »