Finally, I will talk a bit about Latin America's role in the adjustment of global imbalances by highlighting some key differences between the region and those emerging market economies that are the main contributors to global imbalances. 1.
Reducing vulnerabilities: importance of institutional frameworks  The background research paper prepared by the ECB staff (“Financial vulnerabilities in Latin American economies: a reappraisal") gives an excellent overview of the evolution of financial vulnerability in Latin American countries. The trend of narrowing spreads has been decomposed into three factors: reduced risk aversion, ample global liquidity and improved country specific factors.