Capital inflows to Latin America

Carmen Reinhart and Leonardo Leiderman

MPRA Paper from University Library of Munich, Germany

Abstract: Capital inflows are not an unmitigated blessing for the receiving region or country; in fact, they may pose serious dilemmas for economic policy. Large capital inflows are often associated with money and credit expansion, inflationary pressures, a real exchange rate appreciation, and a deterioration in the current account of the balance of payments. In addition, the history of Latin America provides ample evidence that massive capital inflows may also have strong impacts on the stock market, the real estate market, and the money market-impacts which may well threaten tbe stability of these markets and of the financial system as a whole.

Keywords: capital; inflows; exchange; rate; policy; reserves; capital; controls (search for similar items in EconPapers)
JEL-codes: F20 F31 F32 (search for similar items in EconPapers)
Date: 1994
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (72)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/13406/1/MPRA_paper_13406.pdf original version (application/pdf)

Related works:
Working Paper: Capital Inflows to Latin America: The 1970s and 1990s (1994)
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:pra:mprapa:13406

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().