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Capital Inflows to Latin America: The 1970's and the 1990's

Author

Listed:
  • Ms. Carmen Reinhart
  • Mr. Guillermo Calvo
  • Mr. Leonardo Leiderman

Abstract

During the past two years Latin America has received sizable international capital inflows. This paper compares the recent experience with that of the late 1970s. The analysis examines differences and similarities between the two episodes in three broad areas: domestic macroeconomic conditions in the recipient countries at the outset of both episodes, the behavior of the external factors that influence the international allocation of capital, and the response of key macroeconomic variables, such as the real exchange rate, reserves, and stock prices. The paper aims at assessing how vulnerable these economies are to an unexpected and swift reversal in capital inflows, and whether there are signs that the vulnerability has changed appreciably over time.

Suggested Citation

  • Ms. Carmen Reinhart & Mr. Guillermo Calvo & Mr. Leonardo Leiderman, 1992. "Capital Inflows to Latin America: The 1970's and the 1990's," IMF Working Papers 1992/085, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1992/085
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    References listed on IDEAS

    as
    1. Mr. Donald J Mathieson & Ms. Liliana Rojas-Suárez, 1992. "Liberalization of the Capital Account: Experiences and Issues," IMF Working Papers 1992/046, International Monetary Fund.
    2. Alexander K. Swoboda & Jacob A. Frenkel & Jacques R. Artus, 1983. "Exchange Rate Regimes and European-U.S. Policy Interdependence [with Comments] (Régimes de taux de change et interdépendance des politiques économiques en Europe et aux Etats-Unis) (Régimen cambia," IMF Staff Papers, Palgrave Macmillan, vol. 30(1), pages 75-112, March.
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    More about this item

    Keywords

    WP; terms of trade; debt crisis; consumer price index; exchange rate appreciation; net capital; world debt table; inflation rate; creating flow; external borrowing; rate debt; Capital inflows; Real exchange rates; Stock markets; Exports; Western Hemisphere;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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