Part II: The social inequality and poverty after the 2008 crisis
The social inequality and poverty after the 2008 crisis
The case of Ecuador
Latin American Institute of Social Science (FLACSO) Ecuador e-mail: email@example.com
The global economic crisis began in the U.S. financial system with a bubble in asset prices (Kacef et al., 2009). The main triggers of the crisis were associated with: 1) the contraction of credit, 2) the destruction of financial and non-financial wealth, 3) the decline in expectations about the evolution of economic activity, and 4) the decline in international trade. The combination of these four elements led to a deterioration of Gross Domestic Product (GDP) (Kacef et al., 2009).
In the case of Latin America, the effects of the crisis are felt regardless of the degree of development of their financial markets, the level of integration into international financial markets, the degree of trade openness, the ability to respond by developing policies and the conditions prior to the crisis (Titelman et al., 2009).
The transmission of the crisis to the Latin American countries was strongly linked with external financial constraints faced by the countries and the contraction of trade flows (Titelman et al., 2009). However, the effects in the region were different from those observed in previous crises. The low level of debt, the accumulation of international reserves and low external exposure of financial systems, among other factors, decreased sensitivity to the crisis in...
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