ABSTRACT
Has Latin America broken new ground with its performance during the recent global financial crisis and, furthermore, during the recent business cycle? Some level of macroeconomic prudence was certainly present during the recent boom and the region responded to the recent crisis without the dramatic balance of payments adjustments and banking collapses that were typical in the past, and experienced a rapid and strong recovery. But there seems to be a significant level of complacency building up among governments, international organizations and some analysts. This chapter argues that there is indeed good news, but that there is certainly no ground for euphoria. Latin America's performance has not been outstanding or generalized, neither has it been associated only with the region's own efforts.
