Abstract
This paper analyses the financial and economic crises that had a differentiated impact in the Latin-American region, depending on the ability of some countries to keep up an aggregate demand—i.e., through redistribution devices like the degree of integration held within the foreign financial sector. Based on a sample of regional economies, and working over a period spanning from 2000 to 2013, we found that countries with a relatively better income distribution and domestic financial systems connected with credit programs supporting consumption and investment, had had a better economic performance than those countries with a strong linkage to the international financial system, given that the crisis was ignited at the banking system and accelerated by the same mechanism over-spreading negative shock effects on their capacity to offset them and, in doing so, try an economic recovery. Finally, the authors raise some hints to devise correct policy changes to deal in the still aftermath of the crises in Latin America from a post Keynesian perspective.
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Notes
- 1.
Market capitalization (also known as market value) is the share price times the number of shares outstanding. Listed domestic companies are the domestically incorporated companies listed on the country’s stock exchanges at the end of the year. Listed companies does not include investment companies, mutual funds, or other collective investment vehicles.
- 2.
Some authors like Rodrik (1994) have been able to explain that much of the growth rate in per capita income—between 53 and 67 percent, as opposed to 48 % for the World Bank estimated during the period 1960–1993, including also a Gini coefficient, measure for the degree of inequality in land distribution as a proxy for wealth distribution.
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Domínguez Rivas, M.I., García Páez, B. (2016). Income Distribution and the 2008–2012 Economic Crisis: The Latin American Experience. In: Soh, S. (eds) Selected Papers from the Asia Conference on Economics & Business Research 2015. Springer, Singapore. https://doi.org/10.1007/978-981-10-0986-0_10
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DOI: https://doi.org/10.1007/978-981-10-0986-0_10
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