Key themes for Latin America in 2022: stagflation risk will test central banks
Latin America’s economy enters the new year on a weakened footing. Our 2022 themes revolve around the inherent struggle between supporting a slowing economy versus reining in uncomfortably high inflation. And with central banks not following the same rulebook, the chances of policy mistakes are high.
What you will learn:
- We expect Latin American fiscal and monetary policies will tighten significantly in 2022.
- The mishandling of inflation remains a key threat to the outlook.
- While all central banks look certain to miss their inflation targets this year and next, some are giving as much weight to growth as to inflation in their decisions.
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