This study describes how Nicaragua being a small open economy is vulnerable to the events of the international economy. After a review of historical data, general equilibrium analysis and application of microsimulation methodology, the study concludes that the external shocks that have had a greater impact on poverty, inequality and vulnerability of Nicaraguan households have been those related to the reduced flow of remittances, the increase in world oil prices and lower capital inflows.
This study presents the effects of the economy based on macroeconomic events that affected the Mexican economy in the last two decades. The observed results indicate that a reduction in world prices of major export goods, an increase in global food prices and a drop in remittance income, would cause the most damage in the main macroeconomic indicators, labor market and poverty. It also simulates and analyzes the five public policies relevant social protection that could cope with these shocks.
This study addresses the need identified by the governments of seven countries in Latin America to strengthen their knowledge about policy options to mitigate the effects of external shocks.
This study describes how the last decade of the twentieth century was characterized by strong macroeconomic volatility in Latin American economies. In general, the reforms imposed in the early nineties increased flows of entry and exit of goods and capital and also made the economies vulnerable to external shocks. The study presents two toold necessary to define a suitable methodological framework that takes account of all areas, macroeconomic and microeconomic vulnerability .These are a Computable General Equilibrium Model (CGE) and microsimulation analysis.
This is the analysis of the economic context including the labor market, and social protection in the study countries (Bolivia, Colombia, Costa Rica, Ecuador, Guatemala, Mexico and Nicaragua) during the period 1990-2007. It shows that these (like the generality of the Latin American countries) are very sensitive to the impacts, both positive and negative external shocks.
This study explores how the changes in the international economic environment, mainly the economic crisis, the resurgence of inflation in the region, the variability in oil prices, fluctuations in major currencies like the dollar and the euro and the economic policies adopted by other countries have major impact on the Bolivian economy.