The antecedents and aftermath of financial crises as told by Carlos F. Díaz-Alejandro

Some of the best-known papers of Carlos F. Díaz-Alejandro were about Latin America’s crises in the 1980s and 1930s. I show data, figures, and evidence about the crises in the advanced economies thirty years later that fit the same narrative. His unadulterated words aptly describe modern problems across geographical borders and, in this case, income levels. This attests to his timeless insight and understanding. Because some of the observations he made have general applicability to the study of recurring patterns across crises, I have taken the liberty to label these lessons. These are primarily lessons about what to avoid.