CGD's weekly Global Prosperity Wonkcast, event videos, whiteboard talks, slides, and more.
In this CNN interview, Senior Fellow Liliana Rojas-Suarez argues that the recently announced measures in Cyprus that imposes losses on non-insured depositors as part of a full-fledged bank restruct
On January 21st, Senior Fellow Liliana Rojas-Suarez was interviewed by CNN in Santiago, Chile about the recent growth recovery in China and its effect on Latin America. Although Liliana recognized that growth prospects in the region have improved for 2013 in light of China's recent events.
Last month members of the Latin American Shadow Financial Regulatory Committee (CLAAF) convened at CGD to discuss fiscal and monetary issues affecting the region. The claaf, which meets here twice a year, usually offers policy and regulatory recommendations for finance ministers and central bankers in the region. This time the committee proposed something quite different: the five-page statement claaf issued after two days of deliberation recommended the creation of a new regional financial institution—a Latin American Liquidity Fund, to supplement the efforts of the International Monetary Fund (IMF) when the next global financial crisis hits.
In this CNN interview, Senior Fellow Liliana Rojas-Suarez explains that while the region’s economic growth prospects remain strong for 2013, there are some factors that will limit its growth potential. First, external financing needs in the region, as measured by the current account of the balance of payments are widening. This, together with the presence of fiscal deficits in most countries (with the notable exception of Chile and Peru) reduce the region’s resilience to a potential external shocks (such as an exacerbation of the Eurozone crisis). Second, institutional weaknesses and political constraints will hurt some countries in the region, notably Argentina and Venezuela. However, Liliana expects that political constraints to undertake much needed infrastructure investments in Brazil will be eased in 2013, partly motivated by the 2014 World Cup.