Economic crises in Latin America

Rapetti, Martin (2025): Economic crises in Latin America.

Abstract

This article analyzes economic crises in Latin America (LA) from the 1970s to the 2000s, focusing on two major waves: the "lost decade" of the 1980s and the crises of the 1990s and early 2000s. Both waves followed periods of strong capital inflows, a common feature in developing countries facing financial turmoil. LA’s early integration into international capital markets and frequent crises offer a unique opportunity for comparative analysis. The paper also explores the absence of major crises during the early 2000s, despite intensified capital inflows, and examines the role of fiscal policy and sound macroeconomic management in mitigating vulnerabilities.

• Item Type: MPRA Paper
• Language: English
• Keywords: crisis, exchange rate, balance of payments, debt, Latin America
• Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean

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