Latin American Economy

The nominal effective exchange rate

Consumer price index (CPI) inflation

Estimate the effect of terms of trade shock

monetary policy procyclicality

Inflation expectation expectation gaps

Internal Environment

Internal Investment

Financial Sectors Estabes

Bank Capitalization

High performance rates

External Environment

* World demand solidity and international trade (Exports).
* Acomodative financial conditions (High Stock Prices)
* Partial rebound of raw material prices (Hydrocarbons and metals)

US Inflationary Pressures

Financial, commercial and migratory connections

Hardening Monetary Policies

Consequences on interest rates in Latin America

Long term

Brazil, Colombia

Short term

México, Perú

External shocks

Inflationary effect

It forced the central banks of Latin America to change their monetary policies

Monetary policy procyclicality

CREDIBILITY, TRANSPARENCY AND COMMUNICATION

Price stability

Efficacy of monetary policies

Looser monetary policy 2017-2018

Economic Recovery

Fiscal Consolidation

Sustainability

Reduction of fiscal deficit

-Develop Human Capital
-Back Infrastructure bottlenecks
-Improve the management of government and business climate
-Execute financial release

Twin deficit and subdued long-run projections

led by improvements in the private

Domestic investment boosting growth

The end of recession

subsequent recovery in some of the major economies

Are benefits from supportive external condition

Significant tailwinds to the regions's financial

Is providing support to the region's exports