Technology, Capital Flows and the Balance of Payments Constraint in a Structuralist North—South Model

Marcelo Curado, Gabriel Porcile () and Ricardo Viana

Chapter 15 in Advances in Monetary Policy and Macroeconomics, 2007, pp 280-295 from Palgrave Macmillan

Abstract: Abstract In the 1990s Latin America witnessed the return of foreign capital to the region, after having been left aside as a destination for international lending during the ‘lost decade’ of the 1980s (CEPAL, 1998: ch. III). This has been a mixed blessing, however. Clearly, by easing the external constraint, capital inflows contributed to the resumption of growth during the 1990s. But mounting trade deficits and external indebtedment, along with an increasing fragility in the capital account, raised once again in the agenda of several Latin American countries the shadow of currency and debt crises by the end of the 1990s (French-Davis, 2000). The currency crises of Mexico in 1994, Brazil in 1999, and especially that of Argentina and Uruguay in 2002, highlighted the gravity of this problem.

Keywords: Interest Rate; Monetary Policy; Foreign Exchange; Fiscal Policy; Foreign Capital (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-80076-2_15

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230800762

DOI: 10.1057/9780230800762_15

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().