Turmoil in Latin America and the Caribbean: Volatility, Spillovers, and Contagion

The report analyzes potential contagion and spillover effects of the Argentine crisis, from other sources of co-movement or market volatility. The report also examines the impact of the crisis on FDI flows as an indicator of potentially long-lasting deteriorative effects of capital flows to the Region. Finally, the paper assesses the impact of the Argentina crisis on individual countries in terms of trade and/or financial links.