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

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Abstract:

CGD senior fellow Liliana Rojas-Suarez argues that the recent sharp spike in food and oil prices, above the long term upward trend, threatens Latin America’s stability and is the result of excess global liquidity and the U.S. credit mess. She says the region must fight inflation now and, going forward, insist on a greater say in setting global financial rules.