Economic Articles
Economic Reforms in Latin America in the 80's
In the year leading to the early 90's, Latin America countries were frequently subjected to currency crises, banking failures, hyperinflation and many other monetary problem.
The problem has become some well known that even to this day, when economists tells about the different ways in which money can go bad by applying "macroeconomics populism" policy, the default currency referred in the statement is often talking about "peso"
But toward the late 80's, Latin America seems to have learnt the lesson.
With Chile leading the pack and implement economic reforms, State-owned companies were privatized, restriction on imports abolished and budget deficit trimmed.
Chile and the rest of the Latin America countries begain to enjoy attractive growth rate.
With such impressive growth, Latin America is once again attracting investors to the region.
At this point of time, with the in flux of foreign money and growth, the main priority of these countries is to control inflation rather than be concerned with the economic growth.
Economic Reforms Happening in Mexico
While the name being tagged to the financial crisis being 2008, it certainly did not end in 2008.
At this point of time in May 2009, the global economy is still experiencing a rather servere recession and it remains to be seen if a quick recovery is on the table or it will turn out to be another "Lost Decade" similar to what Japan has experienced in the 90's.
Below is a link to an animated illustration of how the current financial crisis developed.
This should give you a pretty good basic understanding of how we arrive at the current situation.
Click on this link to launch the "Credit Squeeze Explained" interactive presentation.
