ABSTRACT
This chapter provides a critical perspective on the current global financial crisis from the standpoint of its dynamics in Latin America. The past two years has seen the publication of some books and numerous scholarly and periodical articles, many of them converging on a common theme: the lack of financial regulation and the resulting acceleration of irresponsible speculation. The general argument advanced in these publications is that the global financial crisis, precipitated by the sub-prime debacle, together with misguided policies has allowed financial ‘innovation’ and speculation to proceed unchecked, giving unscrupulous lenders and traders free rein to exploit the lack of regulatory oversight. We argue that the crisis is not systemic or even structural but financial, and thus correctable with the right monetary policy fix, the construction of a new and more effective financial architecture and global governance.
