ENGLISH

Turmoil in Latin America and the Caribbean: Volatility, Spillovers, and Contagion

By Guillermo E. Perry

Book information

Publisher
World Bank Publications
Year
2008
ISBN
0821354795, 9780821354797, 9780585462752
Open Library ID
OL15577938M
Language
english
Format
PDF
Filesize
931 kB (953672 bytes)
Series
World Bank Working Papers
Pages
62\62
Time added
2011-04-11 19:55:47

Description

Since June 2002, there has been an increase in the level and volatility of spreads along with pressures in the foreign-exchange markets across Latin America and Caribbean (LAC) region. These have been accompanied by political changes and greater political uncertainty in some countries. Countries such as Uruguay, Paraguay, and Bolivia have been facing losses of deposits and reserves of varying degrees of intensity. This report analyzes potential contagion and spillover effects of the Argentine crisis from other sources of market volatility. The report also examines the impact of the crisis on foreign direct investment flows as an indicator of potentially long-lasting harmful effects on capital flows to the LAC region. Finally, the paper assesses the impact of the Argentina crisis on individual countries in terms of trade and/or financial links.

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