After the bubble burst, there was a sharp brake on the creation of enterprises whereas destruction increased only modestly. 2.2. Severe balance-sheet adjustment  Let me now turn to the second force, the severity of balance-sheet adjustments. The next slide (on page 22) shows the changes in inflation-adjusted house prices. The graph on the left compares Japan, the United Kingdom and the United States.
Although Latin American countries have shown lower economic growth rates and higher macroeconomic volatility than other regions, the case of Argentina is on a different scale. If we consider the past 30 years, the average growth in Latin America was less than half of Asia’s, with volatility that nearly doubled Asian levels.