Contrast the economic experience of the HPAE with the experience in Latin America,especially with regard to the 1980s and in terms of weathering financial crises.

Question

Quizplus · Accepted Answer

The Answer is The HPAE have grown more steadily and consistently and with a broader effect on all income levels in society.The HPAE successfully emphasized land reform,free public education,free basic health care,and significant investments in rural infrastructure,such as clean water,transportation,and communication systems,that helped bring a broader sector of society along in terms of development.The difference in growth is especially notable in the 1980s,when growth in the HPAE continued and even accelerated while Latin America was experiencing the "Lost Decade." In terms of handling financial crises,the time periods were different,but the HPAE tended to keep budget deficits and foreign debts at generally manageable levels.Governments were committed to low inflation,which helped avoid severe real appreciations in the exchange rate.In the HPAE,differences between the real exchange rate,the real interest rate,and the inflation rate were relatively low,fostering greater security in the minds of investors.

Contrast the Economic Experience of the HPAE with the Experience