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

By Carmen Reinhart, Guillermo Calvo, Leonardo Leiderman

October 1, 1992

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Carmen Reinhart, Guillermo Calvo, and Leonardo Leiderman. Capital Inflows to Latin America: The 1970's and the 1990's, (USA: International Monetary Fund, 1992) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Balance of payments, Capital inflows, Exports, External debt, Financial markets, Foreign exchange, International trade, Real exchange rates, Stock markets

Keywords: Capital inflows, Consumer price index, Creating flow, Debt crisis, Exchange rate appreciation, Exports, External borrowing, Inflation rate, Net capital, Rate debt, Real exchange rates, Stock markets, Terms of trade, Western Hemisphere, World debt table, WP

Publication Details

Pages:

25
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1992/085
Stock No:

WPIEA0851992
ISBN:

9781451954265
ISSN:

1018-5941

Notes

Paper presented at the Tenth World Congress of the International Economic Association held in Moscow in August 1992.

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