At the time of this writing (late November, 2020) the economic situation in Latin America is dominated by the crisis caused by COVID-19. However, as soon as this emergency is over, other pre-existing challenges to economic policy and financial regulation policy will reappear, some even more forcefully than before, as a consequence of the general impoverishment caused by the pandemic. These challenges are essentially three: (i) socio-environmental conflicts, (ii) climate emergencies, and (iii) long-term climate change.
Post-COVID financial regulatory policy must incorporate awareness that its starting point is very unusual and different from that in existence pre-corona. The set of financial regulation policies appropriate to this situation requires placing an instrument at the center of the design of financial regulatory policy that effectively internalizes the inter-dependencies in the actions of the financial system. This instrument is the ESRM - Environmental and Social Risk Management system.