Reinhart, Carmen and Calvo, Guillermo and Leiderman, Leonardo (1994): The capital inflows problem: Concepts and issues. Published in: Contemporary Economic Policy , Vol. 12, No. 3 (July 1994): pp. 54-66.
Download (108Kb) | Preview
Since 1990 capital has flowed from industrial countries to developing regions like Latin America, 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 the policy options are discussed.
|Item Type:||MPRA Paper|
|Original Title:||The capital inflows problem: Concepts and issues|
|Keywords:||capital flows real exchange rate international reserves current account deficit volatility fiscal policy|
|Subjects:||F - International Economics > F1 - Trade > F10 - General
F - International Economics > F3 - International Finance > F30 - General
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook
|Depositing User:||Carmen Reinhart|
|Date Deposited:||10. Mar 2009 05:48|
|Last Modified:||14. Feb 2013 15:45|
Bercuson, Kenneth and Linda Koenig, The Recent Surge in Capital Inflows to Asia: Cause and Macroeconomic Impact, SEACEN Occasional Paper, 1993.
Calvo, Guillermo A., "The Perils of Sterilization," IMF Staff Papers 38, December 1991, 921-26.
Calvo, Guillermo A, and Carlos A. Végh, "Currency Substitution in Developing Countries: An Introduction," Revista de Análisis Económico 7, 1992, 3-27.
Calvo, Guillermo A., Leonardo Leiderman, and Carmen M. Reinhart, "Capital Inflows to Latin America: The Role of External Factors," IMF Staff Papers 40, March 1993, 108-51.
Calvo, Guillermo A., Leonardo Leiderman, and Carmen M. Reinhart, "Capital Inflows to Latin America: The 1970's and the 1990's," Working Paper 92/85, IMF, 1992. Forthcoming in Edmar Bacha, ed., Development, Trade and the Environment, Macmillan Press, London.
Calvo, Guillermo A., Leonardo Leiderman, and Carmen M. Reinhart, "Capital Inflows to Latin America: With a Reference to the Asian Experience," forthcoming in Sebastian Edwards, ed., Capital Controls, Exchange Rates, and Monetary Policy in the World Economy, Cambridge University Press, Cambridge and New York, 1994.
Chuhan, Punam, Stijn Claessens, and Nlandu Mamingi, "Equity and Bond Flows to Latin America and Asia: The Role of External and Domestic Factors," mimeo, World Bank, May 1993.
El-Erian M.A., "Restoration of Access to Voluntary Capital Market Financing," IMF Staff Papers 39, March 1992, 175-94.
Fernadez-Arias, Eduardo, "The New Wave of Capital Inflows: Push or Pull?," mimeo, World Bank, November 1993.
International Monetary Fund, Policy Development and Review Department, Private Market Financing for Developing Countries, World Economic and Financial Survey Series, International Monetary Fund, Washington D.C., December 1992.
International Monetary Fund, Research Department, Determinants and Systemic Consequences of International Capital Flows, Occasional Paper 77, International Monetary Fund, Washington D.C., March 1991.
Mathieson, Donald J., and Liliana Rojas-Suárez, Liberalization of the Capital Account: Experiences and Issues, Occasional Paper 103, International Monetary Fund, Washington D.C., March 1993.
Rodriguez, Carlos A., "Situación Monetaria y Cambiaria en Colombia," mimeo, CEMA, Buenos Aires, November 1991.
Zahler, Roberto, "Política Monetaria en un Contexto de Apertura de Cuenta de Capitales," Boletín Mensual 771, Banco Central de Chile, May 1992, 1169-80.