Vol. 89, No. 2
Second Quarter 2004
Preface—Rethinking Structural Reform in Latin America
Stephen J. Kay and Michael Chriszt
This issue of the Economic Review contains four articles that were among the papers presented at the conference. The preface summarizes the conference speeches, papers, and discussant comments.
Reform Fatigue: Symptoms, Reasons, and Implications
Eduardo Lora, Ugo Panizza, and Myriam Quispe-Agnoli
To help explore the future of reform, this article aims to document and explain the symptoms of fatigue among the public, policymakers, and opinion leaders.
Creditor Protection and Financial Markets: Empirical Evidence and Implications for Latin America
Arturo Galindo and Alejandro Micco
Although Latin American countries have made significant strides in reforming their financial markets, these markets remain shallow, implying a need for further reform. Stronger protection of creditor rights can improve the size and stability of credit markets and provide greater access to capital for small and medium-sized enterprises that operate under greater financial strictures.
Financial Globalization: Gain and Pain for Developing Countries
Sergio L. Schmukler
This article focuses on the integration of developing countries into the international financial system. It examines recent developments and the principal agents of financial globalization as well as globalization's effect on the domestic financial sector.
A Cost-Benefit Approach to Labor Market Reform
This article assesses labor market regulations in Latin America, documents their recent history, and assesses their costs and benefits.
Regulating Housing GSEs: Thoughts on Institutional Structure and Authorities
W. Scott Frame and Lawrence J. White
In the wake of a $5 billion accounting restatement by Freddie Mac in 2003, concerns about taxpayer liability associated with the housing GSEs have led to various legislative proposals to reorganize their regulatory oversight. This article discusses these proposals, drawing on lessons from U.S. banking regulation to identify and evaluate the points of contention.