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Capital Inflows in a Small Open Economy: Costa Rica

Leon, Jorge (2013): Capital Inflows in a Small Open Economy: Costa Rica.

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Abstract

This document illustrates the inflows of capital to a small and open economy such as Costa Rica using the Metzler Diagram. The simplicity of the Metzler Diagram provides clarity to understand the motivation for the inflows of capital, as well as a framework to analyze the policy options available to the policy-makers.

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