World Bank2014-01-032014-01-032012-04https://hdl.handle.net/10986/16496Latin American and Caribbean (LAC) region were bumping against capacity constraints with unemployment reaching historically low levels and economic activity hitting bottlenecks and central banks were thus engaged in combating upward price pressures through tighter monetary policies. The focus of attention was, as a result, shifting towards the longer-term growth and equity agendas in what appeared to be a more tranquil global environment. This LAC region continues on a relatively robust growth path after a remarkable performance in the aftermath of the global financial crisis. In effect, as discussed in our April 2011 report "LAC success put to the test," the region's recession in 2009 was relatively short lived and surprisingly mild compared to other middle-income countries (MICs) and to its own past and its recovery in 2010-2011 strong. This report starts by setting the stage on the external environment. It provides an overview of recent economic developments and the prospects for the LAC region in coming months, including an analysis of the sources of external risks for the region.Este informe semestral explora los desafíos crecientes que los países de América Latina y el Caribe (LAC) enfrentan al vivir en un mundo globalizado, especialmente en vista de la crisis financiera del 2008-2009. Describe un panorama general de los eventos recientes en la economía mundial y las perspectivas para LAC en los meses siguientes, así como un análisis de las fuentes de riesgo externo para la región. Continúa un estudio detallado de los nuevos patrones en la globalización financiera que yacen detrás de la volatilidad financiera y analiza las nuevas dinámicas en los flujos brutos de capitales (cuyos tamaños son sustancialmente mayores a los flujos netos). A su vez, se examina la transmisión de choques externos a través del canal financiero y su impacto en los países emergentes, en general, y LAC en particular. Específicamente, se analiza el comportamiento y los incentivos presentes en la industria de los gestores de fondos internacionales. La segunda parte se centra en las vulnerabilidades de los países de LAC a una variedad de fuentes de volatilidad de origen externo (en la demanda externa, los términos de intercambio, y las condiciones de financiamiento externo). Se explora en ese capítulo como la exposición a choques externos interactúa con la capacidad de respuesta de las políticas económicas para generar un panorama de las vulnerabilidades de corto plazo a lo largo de LAC.en-USCC BY-NC-ND 3.0 IGOACCOUNTINGAGENCY PROBLEMAGENCY PROBLEMSALLOCATION OF CREDITARBITRAGEASSET BASEASSET CLASSASSET HOLDINGSASSET MANAGEMENTASSET MANAGERASSET MANAGERSASSET PRICEASSET PRICESASYMMETRIC INFORMATIONAUCTIONSBALANCE OF PAYMENTSBALANCE SHEETSBANK CREDITBANK INTEREST RATESBANKING SYSTEMSBASIS POINTSBOND FUNDBOND FUNDSBONDSBORROWING COSTSBUSINESS CYCLESCAPACITY CONSTRAINTSCAPITAL FLOWCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETCAPITAL MARKETSCAPITAL MOVEMENTSCAPITAL REQUIREMENTSCDSCENTRAL BANKCENTRAL BANKSCOLLATERALCOMMODITY PRICESCONSUMER GOODSCREDIT CONSTRAINTSCREDIT DEFAULTCREDIT DEFAULT SWAPSCREDIT GROWTHCREDIT MARKETSCREDIT RATINGSCURRENCYCURRENCY COMPOSITIONCURRENCY MISMATCHESCURRENT ACCOUNT DEFICITSDEBT DEFAULTDEFAULT RISKDEPOSITDEPOSIT INSURANCEDERIVATIVESDEVALUATIONDIRECT INVESTMENTDIVERSIFIED PORTFOLIODOMESTIC FINANCIAL MARKETSDOMESTIC MARKETSECONOMIC DEVELOPMENTSECONOMIC POLICIESEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET BONDEMERGING MARKET EQUITYEMERGING MARKETSENABLING ENVIRONMENTSEQUITY FUNDSEQUITY MARKETEQUITY MARKETSEQUITY RETURNSEXCHANGE RATEEXCHANGE RATESEXPENDITURESFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL FLOWSFINANCIAL INSTITUTIONSFINANCIAL SHOCKSFINANCIAL STABILITYFINANCIAL STRUCTUREFINANCIAL SYSTEMFINANCIAL SYSTEMSFISCAL CAPACITYFISCAL DEFICITSFISCAL POLICIESFISCAL POLICYFIXED INVESTMENTFLEXIBLE EXCHANGE RATEFOREIGN BANKSFOREIGN CAPITALFOREIGN CURRENCYFOREIGN DEBTFOREIGN DIRECT INVESTMENTSFOREIGN EXCHANGEFOREIGN INVESTMENTSFOREIGN INVESTORFOREIGN INVESTORSFOREIGN MARKETSFUND MANAGERSGLOBAL BONDGLOBAL ECONOMYGLOBAL MARKETSGLOBALIZATIONGOVERNMENT BONDHEDGE FUNDSHOLDINGSILLIQUID MARKETSIMPLIED VOLATILITYINFLATIONINFRASTRUCTURE INVESTMENTINSTITUTIONAL INVESTORINSTITUTIONAL INVESTORSINSURANCE COMPANIESINTEREST RATESINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL FINANCIAL INTEGRATIONINTERNATIONAL FINANCIAL MARKETINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL FINANCIAL SYSTEMINTERNATIONAL INVESTORSINTERNATIONAL MARKETSINTERNATIONAL PORTFOLIOINTERNATIONAL SWAPSINVESTINGINVESTMENT BEHAVIORINVESTMENT DECISIONSINVESTMENT FLOWSINVESTMENT PATTERNSINVESTMENT RISKSISSUANCELENDERLENDERSLEVYLIABILITYLIQUID ASSETSLIQUID MARKETSLIQUIDATIONLIQUIDITYLIQUIDITY IN BOND MARKETSLOCAL CURRENCYLOCAL FINANCIAL MARKETLOCAL MARKETSLOCAL STOCK MARKETSLONG TERM CAPITALLONG-TERM INVESTMENTSMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILITYMARK-TO-MARKETMARK-TO-MARKET ACCOUNTINGMARKET CONDITIONSMARKET DISCIPLINEMARKET FAILURESMARKET LIQUIDITYMARKET PARTICIPANTSMATURITIESMATURITYMATURITY TRANSFORMATIONMONETARY POLICIESMONETARY POLICYMONEY MARKETMONEY MARKET RATESMONEY MARKETSMORAL HAZARDMUTUAL FUNDMUTUAL FUND INDUSTRYMUTUAL FUND INVESTMENTMUTUAL FUNDSOIL PRICESOPEN ECONOMIESPENSIONPENSION FUNDSPOLICY RESPONSEPOLICY RESPONSESPORTFOLIOPORTFOLIO ALLOCATIONPORTFOLIO ALLOCATIONSPORTFOLIO CAPITALPORTFOLIO FLOWSPORTFOLIO INFLOWSPORTFOLIO INVESTMENTSPORTFOLIOSPRICE DISCOVERYPRODUCTIVE INVESTMENTSPUBLIC DEBTPUBLIC DEBTSPUBLIC FINANCESPUBLIC INVESTMENTSREGULATORY SYSTEMRESERVERESERVESRESIDENTIAL MORTGAGESRETURNSRETURNS ON EQUITIESRISK AVERSIONRISK SHARINGSAFETY NETSECURITIESSECURITIES MARKETSSOLVENCYSOVEREIGN DEBTSOVEREIGN DEBT PROBLEMSSOVEREIGN RATINGSOVEREIGN RATINGSSTOCK MARKETSTAXTOTAL DEBTTRADINGTRANSPARENCYUNDERWRITERSWEALTH EFFECTWORLD FINANCIAL MARKETSWorld Bank10.1596/16496