During the last three years, Latin America has experienced an economic boom without precedent. Growth has been strong, inflation is under control, and international reserves have increased steadily. The 2004-2006 period has been the best three years for Latin America’s economies since the early 1960’s.
This bonanza has largely been the result of an extraordinarily positive international environment. Commodity export prices are at record levels, global liquidity has been ample, and international interest rates have been low.