Paraguay : Selected Issues

Publication Date: August 01, 2012
Electronic Access: Free Full text (PDF file size is 844KB).
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Summary: This Selected Issues paper for Paraguay discusses how capital inflows contributed to credit expansions. Capital inflows contribute to a rapid expansion of private credit, exacerbating credit and business cycles. These effects are stronger under more rigid exchange rate arrangements and in economies that are more closed to trade. Macroeconomic evidence for Paraguay suggests that local firms might have experienced a relaxation of credit constraints during the high capital inflows phase. Evidence also shows that consumption, investment, and output has grown above trend alongside a strong credit growth.
Series: Country Report No. 12/212
Subject(s): Banking sector | Capital inflows | Credit expansion | External shocks | International banks | Selected issues | Spillovers | Paraguay

Notes Also Available in Spanish
Publication Date: August 01, 2012
ISBN/ISSN: 9781475506808/1934-7685 Format: Paper
Stock No: 1PRYEA2012002 Pages: 29
US$18.00 (Academic Rate:
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