Occasional Papers

Recent Experiences with Surges in Capital Inflows

Author/Editor:

Robert Brandon Kahn ; Adam Bennett ; María Vicenta Carkovic S. ; Susan M Schadler

Publication Date:

September 15, 1993

Summary:

This paper explores the experience of six countries (Chile, Colombia, Egypt, Mexico, Spain and Thailand) with capital inflows. It illustrates that although capital inflows are usually beneficial, too great an inflow can become a problem and make it difficult for authorities to choose the appropriate policy response.

Series:

Occasional Paper No. 1993/010

Subject:

Balance of payments Capital inflows Central banks Current account Current account deficits Exchange rates Foreign exchange Sterilization