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From Capital Flow Bonanza to Financial Crash

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  • Reinhart, Carmen
  • Reinhart, Vincent

Abstract

The standard pattern: capital flows into the new “hot” nation, but then stop or reverses forcing painful adjustment. This column presents research based on such episodes from 181 nations during 1980-2007 and for a subset of 66 nations for the 1960-2007 period. If the pattern of the past few decades holds true, emerging market economies may be facing a darkening future.

Suggested Citation

  • Reinhart, Carmen & Reinhart, Vincent, 2008. "From Capital Flow Bonanza to Financial Crash," MPRA Paper 11866, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:11866
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    References listed on IDEAS

    as
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    Keywords

    international capital flows; crses procyclical polices;

    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations

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