Why does Latin America suffer from high inflation, high informality, and low financial intermediation?

UMN Econ JMC Gabriel Devoto's @gabriel-devoto.bsky.social hypothesis: Government’s use of inflation as fiscal tool causes informality and low financial intermediation.

www.gabrieldevoto.com

If your department is hiring in Macro, check out @gabriel-devoto.bsky.social work on inflation and informality. On top of the JMP, I witnessed firsthand Gabriel’s development as a macroeconomist.

Inflation, informality, and financial intermediation are at the core of policy makers’ concerns in Latin America.

Some argue that inflation may work as an imperfect, but effective, way of taxing the otherwise fiscally elusive informal sector.

They get it wrong…

Mauricio is a terrific economist and my best friend. Doing the PhD with him was a total pleasure. He is exceptionally generous and tirelessly provided feedback and comments to me and others, all of whom were working on different topics.

@umn-econ.bsky.social JMC Maurico Barbosa-Alves @mbarbosaalves.bsky.social unpacks a critical challenge: how climate change will reshape food prices and impact different income groups. Very interesting paper on climate change. Check it out.

How will climate impact poor households in developing countries?

UMN Econ JMC Maurico Barbosa-Alves @mbarbosaalves.bsky.social constructs a model of Brazil in which high temps lower crop yields and agricultural incomes but poor road networks also increase food prices.

mbarbosaalves.github.io

We have known for a while that investment in infrastructure that facilitates trade has huge potential to generate economic growth.