IDEAS home Printed from https://ideas.repec.org/a/ecr/col070/11316.html
   My bibliography  Save this article

The impact of the global financial crisis on Latin America

Author

Listed:
  • Ocampo, José Antonio

Abstract

This essay argues that while the complete lack of liquiditycharacterizing the most severe phase of the financial crisis unleashedin September 2008 is now a thing of the past, lending and productionactivity in the industrialized countries are both contracting rapidly andthe financial system is still undercapitalized. Of all the external channelsthrough which the crisis has been transmitted to Latin America, the dropin remittances is the least important. The most widespread negative effectswill come from the decline in the volume of international trade and thesharp deterioration in the terms of trade for commodities. In addition, aperiod of very restricted external private-sector financing lies ahead. Theregion's economies have entered this crisis in a stronger position than inthe past, mainly because public debt is lower and international reservesare large, but this will only partially mitigate the repercussions of the worstglobal economic crisis since the Great Depression of the 1930s.

Suggested Citation

  • Ocampo, José Antonio, 2008. "The impact of the global financial crisis on Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    • Handle: RePEc:ecr:col070:11316
    Note: Includes bibliography
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/11316
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Charles P. Kindleberger & Robert Z. Aliber, 2005. "Manias, Panics and Crashes," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-62804-5, October.
    2. Ocampo, José Antonio, 2008. "The impact of the global financial crisis on Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    3. -, 2008. "Economic Survey of Latin America and the Caribbean 2007-2008: Macroeconomic policy and volatility," Estudio Económico de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1067 edited by Eclac.
    4. Ocampo, José Antonio & Parra, María Angela, 2003. "The terms of trade for commodities in the twentieth century," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    5. -, 2007. "Preliminary Overview of the Economies of Latin America and the Caribbean 2007," Balance Preliminar de las Economías de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 969 edited by Eclac.
    6. von Braun, Joachim, 2007. "The world food situation: New driving forces and required actions," Food policy reports 18, International Food Policy Research Institute (IFPRI).
    7. Alejandro Jara & Camilo Tovar, 2008. "Monetary and financial stability implications of capital flows in Latin America and the Caribbean," BIS Papers, Bank for International Settlements, number 43.
    8. World Bank, 2009. "Global Economic Prospects 2009 : Commodities at the Crossroads," World Bank Publications - Books, The World Bank Group, number 2581.
    9. Tromben, Varinia & Jiménez, Juan Pablo, 2006. "Fiscal policy and the commodities boom: the impact of higher prices for non-renewables in Latin America and the Caribbean," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    10. Ocampo, José Antonio, 2007. "The macroeconomics of the Latin American economic boom," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    11. -, 2008. "Preliminary Overview of the Economies of Latin America and the Caribbean 2008," Balance Preliminar de las Economías de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 971 edited by Eclac.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Titelman Kardonsky, Daniel & Pérez Caldentey, Esteban & Pineda Salazar, Ramón, 2009. "The bigness of smallness: the financial crisis, its contagion mechanisms and its effects in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Martinez, Lisana B. & Terceño, Antonio & Teruel, Mercedes, 2013. "Sovereign bond spreads determinants in Latin American countries: Before and during the XXI financial crisis," Emerging Markets Review, Elsevier, vol. 17(C), pages 60-75.
    3. Ocampo, José Antonio, 2008. "The impact of the global financial crisis on Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kacef, Osvaldo, 2009. "Crisis y políticas públicas en América Latina y el Caribe," Documentos de Proyectos 4164, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. -, 2009. "Macroeconomic policies in times of crisis: options and perspectives," Documentos de Proyectos 3665, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. -, 2009. "Políticas macroeconómicas en tiempos de crisis: opciones y perspectivas," Documentos de Proyectos 3664, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Fanelli, José María & Jiménez, Juan Pablo, 2009. "Crisis, volatilidad y política fiscal en América Latina," Documentos de Proyectos 4165, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Gómez Sabaini, Juan Carlos & Jiménez, Juan Pablo, 2009. "The role of tax policy in the context of the crisis: possibilities and limitations," Documentos de Proyectos 4169, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Machinea, José Luis, 2008. "The international financial crisis: its nature and the economic policy challenges," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    7. Fanelli, José María & Jiménez, Juan Pablo, 2009. "Crisis, volatility and fiscal policy in Latin America," Documentos de Proyectos 4167, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    8. Kacef, Osvaldo, 2009. "Crisis and public policies in Latin America and the Caribbean," Documentos de Proyectos 4168, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Gómez Sabaini, Juan Carlos & Jiménez, Juan Pablo, 2009. "El papel de la política tributaria frente a la crisis: límites y posibilidades," Documentos de Proyectos 4166, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    10. -, 2009. "Foreign Direct Investment in Latin America and the Caribbean 2008," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1139 edited by Eclac, May.
    11. Giovanni Andrea Cornia & Bruno Martorano, 2010. "Policies for Reducing Income Inequality: Latin America During the Last Decade," Working papers 1006, UNICEF,Division of Policy and Strategy.
    12. Torres, Miguel & Hofman, André A., 2008. "ECLAC thinking in the CEPAL Review (1976-2008)," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    13. Craig Sugden, 2009. "Responding to High Commodity Prices," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 79-105, May.
    14. -, 2008. "Economic Survey of Latin America and the Caribbean 2007-2008: Macroeconomic policy and volatility," Estudio Económico de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1067 edited by Eclac.
    15. Cárcamo-Díaz, Rodrigo, 2012. "Macroeconomic cooperation for uncertain times: the REDIMA experience," Cuadernos de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 27857 edited by Eclac, November.
    16. Ocampo, José Antonio, 2007. "The macroeconomics of the Latin American economic boom," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    17. -, 2009. "The Role of Tax Policy in the Context of the Global Crisis: consequences and prospects," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 3168 edited by Eclac.
    18. Shouvik Chakraborty, 2015. "Explaining the Rise in Agricultural Prices: Impact of Neoliberal Policies on the Agrarian Economy," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 4(2), pages 232-258, August.
    19. Shouvik Chakraborty & Prabirjit Sarkar, 2020. "From The Classical Economists To Empiricists: A Review Of The Terms Of Trade Controversy," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1111-1133, December.
    20. Cetrángolo, Oscar & Jiménez, Juan Pablo & Ruiz del Castillo, Ramiro, 2010. "Rigidities and fiscal space in Latin America: a comparative case study," Macroeconomía del Desarrollo 5470, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col070:11316. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.