Regional Economic Outlook, April 2011, Western Hemisphere Watching Out for Overheating

Despite the recent deterioration in the global economic environment, projections for the region involve only a modest worsening of the outlook. The October 2011 Regional Economic Outlook: Western Hemisphere cautions, however, that there are severe downside risks. A sharp slowdown in Asia, for exampl...

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Bibliographic Details
Corporate Author: International Monetary Fund Western Hemisphere Dept
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2011
Series:Regional Economic Outlook
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a United States 
653 |a Foreign Exchange 
653 |a Banks 
653 |a Prices 
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653 |a Currency 
653 |a Banks and Banking 
653 |a Real Estate 
653 |a Banks and banking 
653 |a Banking 
653 |a Exchange rates 
653 |a Inflation 
653 |a Micro Finance Institutions 
653 |a Agriculture: Aggregate Supply and Demand Analysis 
653 |a Deflation 
653 |a Price Level 
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653 |a Housing 
653 |a Macroeconomics 
653 |a Depository Institutions 
653 |a Finance 
653 |a Commodity Markets 
653 |a Foreign exchange 
653 |a Food prices 
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520 |a Despite the recent deterioration in the global economic environment, projections for the region involve only a modest worsening of the outlook. The October 2011 Regional Economic Outlook: Western Hemisphere cautions, however, that there are severe downside risks. A sharp slowdown in Asia, for example in response to a recession in advanced economies, could impact commodity prices, with negative effects on Latin American commodity exporters. With global monetary policy likely to remain accommodative, capital flows could exacerbate overheating and amplify vulnerabilities in emerging markets. Countries with strong real linkages to the United States face a somewhat weaker outlook and should give priority to reducing public debt. Although much of the Caribbean is recovering from a prolonged recession, the outlook remains constrained by high public debt and weak tourism flows. This issue finds that policies can play an important role in mitigating the economic impact of terms-of-trade shocks, and underscores the need to rebuild policy buffers