September 1, 2009
by Ben MillerThat Latin America is better placed to withstand crisis than ever before in recent memory is a mantra repeated by economists since the start of last years meltdown. The same can be said of the regions central banks. Though only a minority is truly independent and active in directing the economy, that group has shown it is able to employ counter-cyclical policy in an unprecedented way.As rates tumbled all over the world amid fears of another Great Depression, LatAm central banks followed suit, with several countries hitting historic lows. Success with fighting inflation in recent years has allowed them to focus on growth.The task moving forward is to continue creating
For the first time, LatAm central banks had the footing to use counter-cyclical policy to fight crisis. Controlling inflation as growth returns is the challenge ahead.