Search

This paper presents the argument that the economies of Latin America had a relatively rapid recovery from the crisis, a recovery which cannot be attributed to the Latin American countries' domestic macroeconomic policies. Although macroeconomic policy cannot be ignored as important for good economic performance during the boom period and recovery, we demonstrate that the recovery has been based upon a combination of favorable external conditions. To show the limitations of macroeconomic policies we analyze their characteristics during the economic boom period, which is considered erroneously countercyclical. Finally, we examine how policies affected the recovery, revealing their limitations. [ABSTRACT FROM AUTHOR]