The Capital Inflows Problem : Concepts and Issues

Author/Editor:

Carmen Reinhart ; Leonardo Leiderman ; Guillermo Calvo

Publication Date:

August 1, 1993

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:

Papers on Policy Analysis and Assessment No. 93/10

Subject:

Notes:

Study based on data from ten Latin American countries and eight Asian countries.

English

Publication Date:

August 1, 1993

ISBN/ISSN:

9781451969931/1934-7456

Stock No:

PPIEA0101993

Format:

Paper

Pages:

37

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