Macroeconomic Volatility: The Policy Lessons from Latin America

31 Pages Posted: 26 Jul 2006

See all articles by Anoop Singh

Anoop Singh

International Monetary Fund (IMF)

Date Written: July 2006


The recent recovery in Latin America has been impressive but also raises the question whether this represents a fundamental break with the region's history of boom-bust cycles. The paper traces how this history of macroeconomic volatility and financial crisis over the past century has adversely impacted on growth and other development indicators, and the role played by policy instability. The paper then concludes that recent policies in the region offer encouragement that these vulnerabilities are being addressed, but notes that an important agenda still remains to be addressed.

Keywords: Macroeconomic volatility, Latin America, growth cycles, monetary policy, fiscal policy, banking and currency crises, structural reform, debt, inflation targeting, fiscal frameworks

JEL Classification: E32, E52, E60, E61, E62

Suggested Citation

Singh, Anoop, Macroeconomic Volatility: The Policy Lessons from Latin America (July 2006). IMF Working Paper, Vol. , pp. 1-31, 2006. Available at SSRN:

Anoop Singh (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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