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Latin American enjoys the commodity boom, but frets about contracting Dutch Disease. Resources...

Latin American enjoys the commodity boom, but frets about contracting Dutch Disease. Resources account for 53% of exports vs. 40% a decade ago, as manufacturing shrinks. Policymakers try stay on top of the issue, holding down currencies, building savings, and investing with an eye towards long-term productivity.
Comments (1)
  • bob adamson
    , contributor
    Comments (4558) | Send Message
     
    The Canadian economy experiences very similar challenges to those described for the economies of these Latin American countries as does, I assume, that of Australia or New Zealand. The studies set out in the attached papers give very interesting analyses of the dual effect of exchange rates and ‘Dutch disease’ which arguably applies not only to Canada but also to a large number of emerged (i.e. Canada, Australia, New Zealand, Chile etc) and emerging countries (i.e. South Africa, Indonesia, Peru etc) where
    (a) a significant portion of the domestic economy and foreign trade derives from the export of commodities, and
    (b) the domestic currency is not the USD or Euro.

     

    www.uclouvain.be/cps/u...

     

    www1.bank-banque-canad...
    11 Jan 2011, 04:42 PM Reply Like
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