Puerto Rico Economic Pulse ©

February 2002: The Health Care Reform: Towards a Reality Check

An Analysis and Evaluation of the Challenges it Faces

High quality health care is an important element of international competitiveness and economic well being. Dissatisfaction with existing health care systems has led to a worldwide movement for reform, and Puerto Rico has been no exception. However, managed care is no panacea. It is an experiment in progress, whose results must be judged carefully. Like other economies, Puerto Rico has been facing the urgent need to control costs of its health care system at a time when demand for health care services is rising. The answer to such a challenge has been the Health Care Reform Plan, established by the Government of Puerto Rico in 1993. Today, the Reform Plan faces a critical financial situation. Find out what the situation is, what are its perspectives, and what changes are needed to make it more feasible long-term.

Puerto Rico Economic Pulse ©

January 2002: The Disappearance of the 30-year Treasury Bond

A Review of Economic Events that Made Headlines in 2001

On October 31, 2001 the U.S. Treasury gave traders in the fixed-income markets a Halloween surprise. It announced, without much warning that it would no longer auction 30-year bonds. Traders reacted with an historic buying binge of existing 30-year treasuries. In some ways the long bond`s demise was inevitable. It had been losing market influence throughout the latter part of the 1990s. While it is too early to gauge the ultimate impact of this seemingly dramatic change in the Treasury`s financing tool kit, many issues and questions arise for both the financial markets and the economy. Find out what led to the downfall of the king of the fixed-income markets and what the issues and implications might be for the economy.