The Right Response in Latin America to Oil and Food Price Pressures: Fight Inflation Now!

This essay addresses the upward trend in the price of oil and food. It argues that the recent acceleration in these prices is mostly a monetary phenomenon associated with the emergence and management of the international financial crisis in industrial countries that started with the US sub-prime crisis in the spring of 2007. The author explains the consequences for Latin American countries, which are forced to deal with the effects of a crisis generated by industrial countries’ policies and regulatory deficiencies.

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