This blog post goes through our recent research, which explores how shifts in the US term spread influence these twin risks—default and depreciation—in five key Latin American markets: Brazil, Chile, Colombia, Peru, and Mexico.

To date, in 2024, the economy of Latin America has continued its macroeconomic adjustment process; the GDP growth is lower than that in 2023, which is accompanied by a decline in the current account deficit of the balance of payments and inflation.

In light of increasing climate uncertainty, it is crucial to understand its economic impacts. This blog post, based on our recent research, explores the asymmetric effects of climate-related shocks on economic growth in Latin America and the Caribbean.

The financial health of oil-producing entities is closely tied to oil prices. Historical data shows that the profits of leading international oil corporations have fluctuated in correlation with global oil price volatility.

Early warning systems represent a crucial asset for regulatory bodies and financial system overseers. While on-site monitoring stands out as a premier means through which authorities can glean both quantitative and qualitative insights into the fiscal well-being of the entities under scrutiny, the execution of such monitoring at a high frequency can incur substantial costs.

In 2023, the international context was characterized by lower economic growth than in the previous year in an environment of higher global interest rates. Consumer inflation remained above its target despite declines in most of the world’s economies.

The impact of financial integration on financial stability is an intricate subject that has garnered extensive scholarly debate regarding its advantageous and deleterious dimensions. The crux of the discourse has…

Instant payments are credit transfers that make funds available in a payee’s account within seconds of a payment order being made, emulating the immediacy offered by cash.