March 27, 2019 |
When the subprime bug infected the US in 2008, European and Asian countries were soon affected. Then, as experts anxiously waited for the fragile economies in Latin America to follow suit as emerging markets had in previous crises, something unusual happened. Some of the biggest economies in the region, such as Brazil, Colombia and Chile, emerged relatively unscathed.
The resilience displayed by Latin American economies at the beginning of the global financial crisis can be traced to several factors. But none is more important than the evolution of regional capital markets. Once addicted to the US dollar, Latin American economies took measures to create domestic demand for financial assets
Markets have experienced sweeping change. But further regional integration and investment diversification are needed