continue to make our decisions meeting by meeting. as we consider additional policy adjustments, we will carefully assess incoming data, the evolving outlook, and the balance of risks. overall, the economy is in solid shape ; we intend to use our tools to keep it there. we remain resolute in our commitment to our maximum - employment and price - stability mandates. everything we do is in service to our public mission. thank you. i look forward to our conversation. 2 / 2 bis - central bankers'speeches

mr ferguson gives a 20 - year overview of economic developments in latin america speech by mr roger w ferguson, jr, member of the board of governors of the us federal reserve system, to the florida international bankers association in miami on 11 / 02 / 99. thank you very much for inviting me to join you this evening here in miami. it is a pleasure to become a member of the roster of federal reserve governors who have addressed this joint meeting of the florida international bankers association and the miami bond club. my theme this evening will mirror the fact that international banking has grown significantly in florida in the more than 20 years that have elapsed since the passage of the florida international banking act. many of you in the audience represent institutions that are active in trade finance throughout the hemisphere, and there is a natural strong link between florida and latin america. similarly, about 20 years ago i studied latin american economic development with albert o hirschman, one of the great development economists of our time. therefore, the topic i would like to discuss this evening is what has worked, and apparently has not worked, in latin america in the last 20 years or so. the main message is that, after the 1980s debt crisis, many latin american countries embarked on a path of greater economic freedom, lessened government intervention in markets and sounder policies. those policies provided the basis for heightened economic dynamism and growth, and thereby led to significant benefits for their citizens, including higher incomes, lower inflation, and a wider range of economic opportunities. in view of my audience today, i should also mention that, partly as a consequence of improved and more market - friendly policies, many of latin america ’ s banking systems are endeavoring to become more efficient, more stable, and better integrated with global financial markets. as a result, latin american banks should become better able to support the process of stable, non - inflationary growth in the future. the current economic and financial problems in brazil should, if anything, reinforce the importance of pursuing sound fiscal and monetary policies and improvements in the underlying institutions that support economic activity. background twenty years ago, or by the end of the 1970s, latin america was on the verge of moving from a phase of unsustainable economic activity – based on high domestic consumption, heavy borrowing from abroad, unsustainable currency levels, and excessive intervention by government in the economy – into a decade of lost growth and lost opportunities known as the debt crisis. as the 1980s began, latin american countries