## Determinants and Repercussions of the Composition of Capital Inflows

_IMF Working Papers, May 1, 2002_

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## Bibliographic details
- Authors: Mark S. Carlson, Leonardo Hernández
- Published: May 1, 2002
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451850895.001

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### Summary and objectives
- The paper examines whether policies can affect the composition of private capital inflows and whether different compositions aggravate crises, motivated by the Mexican, Asian, and Russian crises of the mid- and late 1990s.
- It analyzes links between inflow composition (denomination, maturity, instrument) and crisis severity across episodes.

### Key empirical findings
- "While fundamentals matter, capital controls can affect the mix of capital inflows that countries receive."
- During the Asian crisis, countries with more yen-denominated debt "faired worse."
- During the Mexican crisis, larger short-term debt stocks increased the severity of the crisis.

### Policy implications and interpretation
- Capital controls are a policy tool that can alter the composition of capital inflows even when macroeconomic fundamentals remain important.
- Attention to the currency denomination of external debt (for example, yen-denominated debt) and to the maturity structure (short-term debt stocks) is critical for crisis vulnerability.
- Managing the mix of inflows—through policy settings that influence denomination and maturity—can be relevant for crisis mitigation strategies.

### Publication and bibliographic facts
- Authors: Mark S. Carlson, Leonardo Hernández
- Date: May 1, 2002
- Series: Working Paper No. 2002/086
- Issue: 086
- Volume: 2002
- Pages: 50
- DOI: https://doi.org/10.5089/9781451850895.001
- Stock No: WPIEA0862002
- ISBN: 9781451850895
- ISSN: 1018-5941
- Citation format (Chicago) provided: Mark S. Carlson, and Leonardo Hernández. "Determinants and Repercussions of the Composition of Capital Inflows", IMF Working Papers 2002, 086 (2002), accessed 9/17/2026, https://doi.org/10.5089/9781451850895.001

*Source: IMF Working Paper — "Determinants and Repercussions of the Composition of Capital Inflows" (Working Paper No. 2002/086).*

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## Content in this bundle

- **Determinants and Repercussions of the Composition of Capital Inflows - WP/02/86**
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/determinants-and-repercussions-of-the-composition-of-capital-inflows-15801_