CAMBRIDGE: The international financial crisis continues, with South America feeling the brunt of the storm. Deep economic emergencies have hit Brazil, Peru, Colombia, Ecuador, and Venezuela. Brazil's crisis will cause a recession in neighboring Argentina. Even Chile, the outstanding performer of the region, will have very slow growth in 1999. South America's unfolding crisis points out, once again, three major problems in today's international financial system: pegged exchange rates, volatile international capital movements, and the International Monetary Fund itself.
CAMBRIDGE: The international financial crisis continues, with South America feeling the brunt of the storm. Deep economic emergencies have hit Brazil, Peru, Colombia, Ecuador, and Venezuela. Brazil's crisis will cause a recession in neighboring Argentina. Even Chile, the outstanding performer of the region, will have very slow growth in 1999. South America's unfolding crisis points out, once again, three major problems in today's international financial system: pegged exchange rates, volatile international capital movements, and the International Monetary Fund itself.