November 1, 2011
by Ben MillerAfter dodging a bullet in 2008’s financial crisis and subsequently fixing vulnerabilities exposed during that period, Latin American policymakers feel more prepared than ever to face future contagion risks. Events in Europe, however, are being watched with increasing unease amid the realization that the continent’s debt predicament will eventually wash upon the region’s shore in some form or another.
A splashy announcement by euro-zone leaders in late October sent markets sharply higher, but the plan’s lack of substance and the difficulties of executing it left many observers unconvinced that the uncertainty hanging over Europe had passed, meaning that Latin America will have
Latin America may be better prepared to face contagion risks, but the debt crisis in Europe will bring unexpected surprises for the battle-tested region.