In this context of international coordination, starting up the G20 has given a participation at the international level to the emerging economies as they had never before had. And not only in the G20 emerging countries have gained influence at the international level, but also through the recently established Council of financial stability (FSB), the Basel Banking Supervision Committee and even in the International Monetary Fund (IMF). through. These bodies, emerging economies, and the Latin America in particular, suitable for a valuable contribution given the experience of recurrent crises in the past. Until the present crisis, fiscal policy did not have the reputation that had during the great depression. In its place appeared the monetary policy with a supreme power. But the current crisis returned to demonstrate the validity of fiscal policy in limiting the effects of this type of situation.
The crisis us He taught that for this type of contexts, monetary and fiscal policy are a mutual hand in addressing the adverse scenario. Barry Eichengreen in his exhibition in which he sought similarities with the 30 crisis, stressed the depth of the expansionary fiscal policies in the present crisis. Eichengreen, the fiscal policies of economic stimulus have been key in limiting the depth of the crisis and should not be removed prematurely as happened in the crisis of the 30 which limited the recovery of U.S. GDP that recently reached the levels of 1928 in 1942. The crisis has been a test in which several of the emerging showed that they are developing. An element which has probably gone unnoticed but that shows the strength achieved by emerging economies, have been agreements on exchanges of coins that were among them. These agreements have reduced dependence on assistance from international agencies to maintain a position of strength against the crisis and transforms into a mechanism of consolidation of the development of these economies.
In Latin America in particular, the crisis has highlighted the importance of the preservation of macroeconomic stability through sound policies and strong and properly regulated financial systems, although it does not feel that all countries have fully learned the lesson and value such assets that generate so much contribution to the growth and economic development in its dimension. A new world map arises after the crisis with a stronger role for the emerging world and the need for greater coordination and international regulation. We will be better or will again say that all past was better? Horacio Pozzo opportunity of investment advantage this crisis to buy. How did the subscribers of our newsletter of investment overall value, than already recovered its cost by investing in companies that we recommend. Do you want to know what? You can try entering here to find out and co Latinforme. com is the main source of financial information and independent opinion about Latin American and global markets from a Latin American perspective. From our offices in Buenos Aires, Argentina, we bring you the latest news and alerts to help you to get profits no matter the direction taken by the market.