An analysis suggests that the lack of a stock market is not the fault of businesses or investors, but of the system.
In his blog in Elfinancierocr.com, Allan Rodriguez, Founding Member and General Manager of Group CFS, analyzes in two successive posts how much costs are implied by the productive economy not having a stock market from which to obtain financing as several causes of the problem.
"I wish that it would be someday!" said Mexican president Felipe Calderon, pointing out that Latin America has very distinct economic and monetary policies.
He also highlighted the various exchange rate and monetary systems. "There are countries which have their own currency and the corresponding seigniorage; and there are countries which used other countries' currencies, such as El Salvador or Ecuador, which have their economies in US dollars.
In order to reduce the effects of the economic slow down, some politicians are turning to monetary policy or the Central Bank. They believe that by printing more money there will be more wealth, more investment and more employment.
When a Central Bank, such as the US Federal Reserve (FED) or the European Central Bank, increases the amount of money in circulation it is done by reducing interest rates.