MERCOSUR Report No. 8 (2001-2002)
The eighteen months from June 2001 to end December 2002 were a period of unprecedented economic crisis within MERCOSUR, stemming from the sharp external shock that, with different characteristics, origins, and consequences in each member country, manifested itself in the blocs two main economies as the exhaustion of market or voluntary credit. This phenomenon occurred in the context of a world economy with little momentum, one finding it highly difficult to recover the growth rate of the 1990s, and characterized, in particular, by limited flows of liquidity towards emerging markets. Unlike the traumatic events of recent years, this was not a case of mere contagion effect among neighboring and partner countries.