Editor’s Note: does decoupling or not decoupling? The Latin American region has not disengaged with regard to price increases in commodities, in what Yes seems to have done is the private sector. Its internal strength for now is protecting it, and its companies are benefiting, as that Horacio analyzes us today. They can send me your feedback a: a. Despite the Crisis, remains committed to consumption in Latin America Buenos Aires, Argentina on April 21, 2008 what is happening in the world is something unprecedented. Who would have imagined it so only a couple of years ago? while the developed world is increasingly more immersed in the economic downturn, in Latin America, while some countries have felt to some extent the impact of the crisis, in General is having a good performance, with very good performance of some economies such as the Brazilian and the Peruvian.
I don’t know if you can talk of decoupling or not. But for many, the famous decoupling does not exist, the region is not experiencing an impact of significance in the economies of the region. The truth is that for Latin America, the main problem remains the fight against inflation. The policies that have been implemented to bolster economic growth have linkage with the attenuation of the effects of inflation and monetary policies that have an impact on the exchange rate and thus on the competitiveness of economies. I would encourage to say that there are two factors that are combined for this good moment of the region (this without considering the exceptional moment of commodity prices): the good macroeconomic context that Latin American economies are enjoying (again, the main problem is the inflation) and the improvement in the purchasing power of the population. The good situation in the private sector of Latin American economies is what is allowing that Governments do not have the need of putting at risk their accounts to carry out counter-cyclical policies.