Effects of Financial Crises on Latin American Economies-Colombia Case and the SMEs

Abstract

This article analyzes the most representative international financial crises in Colombia since 1990: the Asian crisis of 1997 and the Sub-Prime crisis of 2008 in the United States. Likewise, the impacts and their effects on national production in some Latin American countries are indicated. Finally, it is shown how financial literacy cushions the negative effects on small and medium-sized enterprises (SMEs), which are of vital importance in the economy for its contribution to GDP and the generation of formal jobs.

A Systematic Review of Financial Literacy Research in Latin America and The Caribbean

“…The context in which each author considers the definition of FL is also highlighted. In most FL studies, the focus is on the knowledge and skills of individuals, working on strategies of individuals involved in small and medium-sized enterprises [51], the capitalization of bonds [52], and how individuals manage their pension fund portfolios [53]. The focus on the different FL dimensions helps to explain the low FL levels in the region [21,23,24,[37][38][39][40][41][42].…”