The Capital Inflows Problem: Concepts and Issues
Summary:
Since 1990 capital has started to move from industrial countries to developing regions like Latin America, the Middle East and parts of Asia. Reentry into international capital markets is a welcome turn of events for most countries. However, capital inflows are often associated with inflationary pressures, a real exchange rate appreciation, a deterioration in the current account, and a boom in bank lending. This paper briefly examines how these inflows have altered the macroeconomic environment in a number of Asian and Latin American countries. The pros and cons of a menu of policy options are discussed.
Series:
Policy Discussion Paper No. 1993/010
Subject:
Balance of payments Capital account Capital flows Capital inflows Central banks Foreign exchange International reserves Real exchange rates
Notes:
Study based on data from ten Latin American countries and eight Asian countries.
English
Publication Date:
August 1, 1993
ISBN/ISSN:
9781451969931/1564-5193
Stock No:
PPIEA0101993
Pages:
37
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