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Capital inflows to Latin America with reference to the Asian experience

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  • Reinhart, Carmen
  • Calvo, Guillermo
  • Leiderman, Leonardo

Abstract

This essay has four objectives. The first is to document the current episode of capital inflows to Latin America based on data for ten Latin American countries. 6 The second is to compare the Latin American experience with that of a number of Asian countries that have also been the recipients of sizable capital inflows and examine to what extent the nature of the capital inflows and macroeconomic consequences are similar in the two cases. The third is to assess the role of external factors in accounting for the observed capital inflows and the real exchange rate appreciation in Latin America. Last, the chapter discusses the implications of capital inflows for economic policy.

Suggested Citation

  • Reinhart, Carmen & Calvo, Guillermo & Leiderman, Leonardo, 1995. "Capital inflows to Latin America with reference to the Asian experience," MPRA Paper 13840, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:13840
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    References listed on IDEAS

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    1. Pedro Aspe Armella & Rudiger Dornbusch & Maurice Obstfeld, 1983. "Financial Policies and the World Capital Market: The Problem of Latin American Countries," NBER Books, National Bureau of Economic Research, Inc, number arme83-1, July.
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    3. Guillermo A. Calvo & Carlos A. Végh, 1993. "Exchange-Rate Based Stabilisation under Imperfect Credibility," International Economic Association Series, in: Helmut Frisch & Andreas Wörgötter (ed.), Open-Economy Macroeconomics, chapter 1, pages 3-28, Palgrave Macmillan.
    4. Bernanke, Ben S., 1986. "Alternative explanations of the money-income correlation," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 25(1), pages 49-99, January.
    5. Guillermo A. Calvo, 1983. "Trying to Stabilize: Some Theoretical Reflections Based on the Case of Argentina," NBER Chapters, in: Financial Policies and the World Capital Market: The Problem of Latin American Countries, pages 199-220, National Bureau of Economic Research, Inc.
    6. 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.
    7. Calvo, Guillermo & Vegh, Carlos, 1991. "Exchange rate stabilization under imperfect credibility," MPRA Paper 20486, University Library of Munich, Germany.
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    11. Blanchard, Olivier Jean, 1989. "A Traditional Interpretation of Macroeconomic Fluctuations," American Economic Review, American Economic Association, vol. 79(5), pages 1146-1164, December.
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    More about this item

    Keywords

    capital flows real exchange rate international reserves reversals crises;

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F3 - International Economics - - International Finance

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