Latin America Faces Tough Monetary Policy Dilemma Amid Growth Slowdown
The Latin American and Caribbean region is expected to see positive economic growth in 2017 and 2018 after a period of slowdown. The main focus is on the monetary policy dilemma faced by countries in the region when dealing with economic shocks. Countries have to decide between raising interest rates to control inflation or lowering rates to boost the economy, but both options have drawbacks. The report suggests that the region needs to strengthen its own sources of growth, like structural reforms and infrastructure investment, due to weak fiscal situations in many countries.