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She is also the chair of the Latin American Committee on Macroeconomic and Financial Issues (CLAAF) and Adjunct Professor at the School of International and Public Affairs at Columbia University, New York. From March 1998 to October 2000, she served as managing director and chief economist for Latin America at Deutsche Bank. Before joining Deutsche Bank, Rojas-Suarez was the principal advisor in the Office of Chief Economist at the Inter-American Development Bank. Between 1984 and 1994 she held various positions at the International Monetary Fund, most recently as deputy chief of the Capital Markets and Financial Studies Division of the Research Department. She has been a visiting fellow at the Institute for International Economics, a visiting advisor at the Bank for International Settlements and at the Central Bank of Spain. She has also served as a professor at Anahuac University in Mexico and advisor for PEMEX, Mexico’s National Petroleum Company. Rojas-Suarez has also testified before a Joint Committee of the U.S. Senate on the issue of dollarization in Latin America.
She has published widely in the areas of macroeconomic policy, international economics and financial markets in a large number of academic and other journals including Journal of International Economics, Journal of International Money and Finance, Journal of Development Economics, Journal of Contemporary Economic Policy, International Monetary Fund Staff Papers. She has also published or being cited in prestigious newspapers such as the Financial Times, the Wall Street Journal and the Washington Post. She is also regularly interviewed by CNN en Español.
Michael P. Dooley & Donald J. Mathieson & Liliana Rojas-Suarez, 1997. "Capital Mobility and Exchange Market Intervention in Developing Countries" NBER Working Papers 6247, National Bureau of Economic Research, Inc.
Rojas-Suarez, L & Weisbrod, S-R, 1997. "Financial Markets and the Behavior of Private Savings in Latin America" Working Papers 340, Inter-American Development Bank, Research Department.
McNelis, P.D. & Rojas-Suarez, L., 1996. "Exchange rate depreciation, Dollarization and Uncertainty: A Comparison of Bolivia and Peru" Working Papers 325, Inter-American Development Bank, Research Department.
Rojas-Suarez, L. & Weisbrod, S.R., 1996. "Banking crises in Latin America: Experience and Issues" Working Papers 321, Inter-American Development Bank, Research Department.
Rojas-Suarez, L. & Weisbrod, S.R., 1996. "Building Stability in Latin American Financial Markets" Working Papers 320, Inter-American Development Bank, Research Department.
Rojas-Suarez, L. & Weisbrod, S.R., 1996. "Managing Banking Crises in Latin America: The Di's and Don'ts of Successful Bank Restructuring Programs" Working Papers 319, Inter-American Development Bank, Research Department.
Rojas-Suarez, L. & Weisbrod, S., 1994. "Achieving Stability in Latin American Financial Markets in the Presence of Volatile Capital Flows" Working Papers 304, Inter-American Development Bank, Research Department.
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Media Relations Coordinator
Contacto en español:
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Ver el documento de Recomendaciones de Política de CLAAF
WASHINGTON, D.C.(June 7, 2011)—Latin American economies face substantial risks of credit and asset bubbles due to a flood of capital fleeing economic and financial uncertainties in the United States and Europe and should take steps to slow the growth of credit, a group of the region’s top economists and financial experts said in a report released today.
“Rapid increases in real estate and equity prices are raising the concern of the development of asset bubbles in several Latin American economies,” warns the policy statement from the Latin American Shadow Financial Regulatory Committee (CLAFF). “Central banks should consider adopting explicit credit growth caps,” the statement said.
The credit growth caps, a ceiling on bank’s assets or outstanding loans, implemented at the bank level, is one of several measures that the group urged financial policy makers in the region to consider. The recommendation is surprising because it involves setting quantitative limits rather than using price signals.
“In normal times we would not consider such a measure,” said Liliana Rojas-Suarez, a senior fellow at the Center for Global Development and the president of CLAAF.
“But these are not normal times. Uncertainty about debt overhangs and the direction of economic and financial policy in the United States and Europe is likely to persist, causing a flood of capital to Latin America, leading to unsustainable increases in asset prices and credit,” she said. “We need measures to prevent these bubbles before it’s too late.”
The policy statement, Are Uncertainties in the North Seeding a New Crisis in the South? Options for Latin America, warns that economic and financial uncertainties in developed countries are causing problems for Latin America. It proposes a range of policies for addressing the problem.
The Committee was formed in Rio de Janeiro in July of 2000 by a group of prestigious Latin-American economists with strong expertise in financial markets and other macroeconomic issues. Since then, the Committee’s purpose has been to explore the implications of different events affecting the region and to develop independent policy recommendations that can help shape the response of the public and private sectors towards the solution of these problems.
The launch event Tuesday morning included high level panelists who discussed the risks, and explained in detail what the policy recommendations would mean for Latin America. The event was hosted by the Center for Global Development, an influential and independent Washington based think tank. The Center supports CLAAF during its meeting on an annual basis. The current president of CLAAF, Liliana Rojas-Suarez, is a senior fellow at CGD.
Notes to Editors
The Latin American Shadow Financial Regulatory Committee (CLAAF) consists of former senior economic policy makers from across the region who hold a wide variety of views. CLAAF alternates between meeting in Washington, and in Latin America on a twice-yearly basis. At each meeting, the group releases a policy statement on a specific issue affecting Latin America’s financial markets with the goal of influencing the actions taken by the policymakers in the region.
The Center for Global Development (CGD) is an independent, non-profit policy research organization dedicated to reducing global poverty and inequality and to making globalization work for the poor. Through a combination of research and strategic outreach, the Center engages policymakers and the public to influence the policies of the United States, other rich countries, and such institutions as the World Bank, the IMF, and the World Trade Organization to improve the economic and social development prospects in poor countries.
Event materials, including video footage of the event, photos, and a copy of the statement will be available on the Center for Global Development website at http://www.cgdev.org.
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The largest crisis in the history of microfinance is now unfolding in India. After five years of growth so fast it has been described as “indescribable,” and after a lucrative initial public offering (IPO) by the leading firm, the government of the state of Andhra Pradesh has cracked down. Amid reports of microcredit-linked suicides, the state has urged borrowers to stop repaying, and millions have heeded the call. Bankruptcies of some of the world’s largest microcreditors are now a realistic possibility.
What is the reality of microcredit in India? Is the backlash an engineered campaign to protect a government-run (and World Bank–financed) finance program from private-sector competition? Or has the fast growth in credit ensnared the poor in debt? Some of each?
And what lessons does the crisis hold for actors worldwide, including microfinance institutions and investors ranging from the World Bank to Kiva users? When is microcredit—and investment in it—too much of a good thing?
Senior Fellow, Center for Global Development
Technology Program Manager, CGAP, World Bank
Consulting Editor, Economic Times
Contributor, Times of India
Research Fellow, Cato Institute
Senior Fellow, Center for Global Development
Managing Director, Center for Financial Inclusion, ACCION International
Vice President of Communications & Outreach, Center for Global Development