CGD Policy Blogs

In December, members of the Latin American Shadow Financial Regulatory Committee (CLAAF) convened at CGD to discuss global financial and monetary developments affecting Latin America. The CLAAF, which meets here twice a year, usually offers policy and regulatory recommendations for finance ministers. central bankers and financial regulators 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.

The CGD and Social Finance Development Impact Bonds Working Group is designing a new type of investment vehicle to attract private investors who want to do good and do well while delivering development outcomes.

On May 22nd, members of the Latin American Shadow Financial Regulatory Committee (CLAAF) convened at CGD to discuss some of the most pressing fiscal and monetary issues affecting Latin American economies. The result of the committee’s two-and-a-half-day-long discussion was a four page statement and several clear recommendations for rethinking financial policies in the midst of a global crisis.

Conventional wisdom has it that when the United States catches a cold, Latin America gets pneumonia. But when the United States caught financial pneumonia in 2008, Latin America escaped with little more than a cold. What’s changed?