We are pleased to share a new publication in the academic journal International Journal of Energy Economics and Policy, entitled “Determinants of Financial Hedging Strategies among Commodity Producer Firms in Latin America”, authored by Carlos Giraldo, Iader Giraldo, Cristian Huertas, and Juan Camilo Sánchez.
Direct Investment (DI) in Paraguay has been influenced by various economic and structural factors over the past decades. From the economic boom of the 1970s, driven by major infrastructure projects and active investment incentives, to the liberalizing reforms of the 1990s and sectoral diversification in the twenty-first century, the development of DI has been shaped by a mix of internal and external factors.
This paper examines the transmission of U.S. monetary policy shocks to bank lending in 12 Latin American countries between 2000 and 2020. Using data from 118 banks, we find evidence of an international bank lending channel, even in countries with low direct exposure to U.S. banks.
We are pleased to share a new publication in the academic journal Energy Economics, this time featuring the research “Climate Growth at Risk in the Global South”, authored by Carlos Giraldo, Iader Giraldo Salazar, Jose E. Gomez-Gonzalez, and Jorge M. Uribe.
Latin America and the Caribbean (LAC) face a complex global landscape characterized by geopolitical shifts, trade fragmentation, and heightened uncertainty. Within this environment, the growing trend of nearshoring—the relocation of production activities closer to consumer markets—emerges as a potential source of economic dynamism.
We are pleased to share a new publication in the academic journal Research in International Business and Finance, featuring the study: “US uncertainty shocks, credit, production, and prices: The case of fourteen Latin American countries,” authored by Carlos Giraldo, Iader Giraldo-Salazar, Jose E. Gomez-Gonzalez, and Jorge M. Uribe.
We are pleased to share a new publication in the academic journal International Journal of Bank Marketing. This time, it features the research titled “The adoption of fast payment systems (FPS) in Latin America: the role of financial literacy and cash-related beliefs”, authored by Carlos Giraldo, Iader Giraldo, Mauricio Losada-Otálora, and Nathalie Peña-García.
On May 16, 2025, the 9th Joint RFA Research Seminar took place in Medellín, co-organized by FLAR, AMRO, and ESM.
The event brought together experts from international financial organizations, central banks, finance ministries, and academia to discuss the impact of climate change on macroeconomic stability, financial system resilience, and public finances and sovereign risk.
This blog post shares the story behind our recent working paper on how Colombia’s unique Gross Leverage Position in foreign exchange derivatives helped prevent a housing bubble from bursting and what emerging economies can learn from it.
Housing prices are among the most crucial determinants of a country’s financial and macroeconomic stability. As a key macroeconomic indicator, they significantly influence both consumption and investment, shaping economic and financial cycles. Given that housing represents a substantial share of household wealth, price fluctuations have far-reaching effects on consumption, savings, and labor market decisions.
In the first quarter of 2025, economic conditions in the United States reflect a labor market showing mixed signals, alongside persistent inflationary pressures. This context may limit the Federal Reserve’s (Fed) room to cut its policy rate, suggesting a scenario of higher international interest rates for a prolonged period.
The global economy is undergoing a reconfiguration process that is characterized by growing geoeconomic fragmentation, which is defined as the tendency for trade, investment, and global value chains to divide into geopolitically aligned blocs.
We examine the relationship between a country’s level of investment in research and development (R&D) and financial stability. Our findings emphasize the importance of a balanced fiscal strategy that reconciles the urgency of short-term fiscal consolidation with the pursuit of long-term economic growth and productivity.
Fiscal policy can significantly impact the rate of inflation in Latin American countries. Governments in the region have historically implemented procyclical fiscal policies, increasing spending and borrowing during periods of economic growth and tightening policies during recessions.
In recent years, fiscal matters have taken center stage in both academic research and economic policy debates. This heightened focus is largely a consequence of the significant rise in public debt levels observed across advanced and emerging economies in the aftermath of the COVID-19 pandemic. At the same time, the sharp increase in inflation experienced in many countries led central banks to implement substantial hikes in policy interest rates.
Latin America faced a mixed economic outlook in 2024 amid a slight global economic slowdown driven by geopolitical tensions and uneven performance among major global economies. The region’s economic growth outpaced initial projections (2.3% compared to 1.8% forecasted), supported by resilient external capital flows, robust financial systems, and monetary policies that helped bring inflation closer to target levels.
The financial landscape in Latin America is undergoing a transformative shift with the growing adoption of Fast Payment Systems (FPS). These systems, which facilitate real-time or near-real-time financial transactions 24/7, offer numerous advantages over traditional payment methods, such as cash and cards. With features like low transaction costs, accessibility, and immediate availability of funds, FPS is poised to revolutionize how payments are conducted.