Latin America is entering the sixth year of an adjustment process whose end is not yet in sight, despite the fact that it has involved the costliest recession since the Great Depression and in most countries a major effort of economic policy restructuring. Given the duration and severity of the crisis, adjustment is no longer feasible unless accompanied by growth. However, in view of the increase in the current account deficit in 1986 and the reluctance of private creditors to grant voluntary loans, the financing of an expansionary adjustment does not seem likely. Thus the question naturally arises whether the current strategy will suffice to achieve both adjustment and growth / or whether new, bolder and more far-reaching initiatives should be introduced.
Keywords:
Adjustment Process, Latin America, Crisis, Economic Policy, External Financing
Author Biographies
Andrés Bianchi, CEPAL
Director de la División de Desarrollo Económico de la CEPAL.
Robert Devlin, CEPAL
Economista de la División de Desarrollo Económico de la CEPAL.
Joseph Ramos, CEPAL
Economista de la División de Desarrollo Económico de la CEPAL.
Bianchi, A., Devlin, R., & Ramos, J. (1987). El proceso de ajuste en América Latina 1981-1986. Estudios Internacionales, 20(79), p. 272–320. https://doi.org/10.5354/0719-3769.1987.15714
Twitter