BANK NEXUS AS ONE OF THE TRANSMISSION CHANNEL OF THE FINANCIAL CRISIS TO LATIN AMERICA COUNTRIES AND THE ANSWER OF LOCAL GOVERNMENTS POLICY

The aim of this thesis is to answer the question of whether the bank nexus is one of the transmission channel of the latest financial crisis to developing countries. The global financial crisis of 2007-2009 affected the whole world, but they are countries that have been less affected than others, or vice versa they were able to respond to the crisis with better instruments of monetary and fiscal policy, such as the countries of Latin America, which had during the last crisis greater credibility than it was usual in other financial shocks before. First, the thesis illustrates the financial crisis, then the possible transmission channels. In the analytical part I will focus my attention primarily on the canal of bank bonds, which I'll explore using regression analysis to confirm or refuse whether these bank nexus influence strongly on the spread of the financial crisis in Latin America. Last but not least, I will summarize evidence of analysis and also government policy in these countries, which caused rapid economic recovery after the crisis.