Government policies adopted to solve these problems.
1. The solution in the short term.
In short, when the outflow of capital from many foreign countries. And to restore the loan stoppage. Thus many lack the ability to repay debt and to request financial assistance from the IMF as well as the negotiations for debt restructuring to limit damage to the creditors and the debtor country can gradually repay the debt. The immediate financial problems cannot be causing the changes needed to create a sustainable economic growth in the long term. Thus, because the economic crisis in Latin America is the result of structural problems in production and macroeconomic management of the public sector. The long-term solution needs to be aimed at restructuring the country's income distribution to reduce reliance on income from agricultural production or manufacturing field is only one branch.
2. Troubleshooting the long term.
Long-term solutions are needed to reform the administration of government macroeconomic insights, especially regarding governance principles. And independence of government agencies to implement policies independently of political interest groups. Attempt to treatment guidelines, including monetary policy, fiscal policy carefully tightened without changing frequently to reduce the risk to the private sector. And reduce the volatility of income was negatively impacted by changes in government policies in Latin America. However, many countries in Latin America is quite uncertain political crisis which resulted in the discipline of macroeconomic policy, especially fiscal discipline weakened .
In addition to fiscal discipline Maintaining financial discipline also play a role in solving the economic problems of countries in Latin America in the long run. Due to the pre-crisis period Monetary policy often resulted in a more volatile business cycle by helping the government to provide money to offset the budget deficit. In particular, the use of monetary policy by the central bank lending to the government, the amount of money rose. Followed by a rise in inflation. And a slate leading up to the financial crisis and the instability of the financial system.
3. Outcome of the efforts to resolve the issue.
From the 2000s found that the major Latin American countries to recover from the debt crisis quickly. Due to a combination of factors both internal and external. In terms of external factors Countries can export commodity is oil and non-oil products in the domestic price of rising world commodity prices. There was an influx of foreign income to many Latin American region. Moreover, the liquidity in the global market in higher interest rates remains relatively low level continuously for a long time. Therefore, the burden of interest payments is low and can find a new loan to replace the original maturity of the loan easily.
In terms of internal factors Economies benefit from the reform of the market system, market forces can work better. The distribution of the importance of the field of manufacturing and exporting various more balanced. And implementation of macroeconomic policy to maintain economic stability, coupled with the potential for economic growth. In particular, the inflationary solution in a timely manner. The inflation targeting system in many countries. Disciplined fiscal Elevation of the independence of the central bank. To improve the governance of financial institutions and the provision for doubtful accounts. And the current account closely.