Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors

66 Pages Posted: 15 Feb 2006

See all articles by Guillermo A. Calvo

Guillermo A. Calvo

Columbia University - School of International & Public Affairs (SIPA); National Bureau of Economic Research (NBER)

Leonardo Leiderman

Tel Aviv University - Eitan Berglas School of Economics; Bank of Israel

Carmen M. Reinhart

Peter G. Peterson Institute for International Economics; National Bureau of Economic Research (NBER)

Date Written: August, 1992

Abstract

The characteristics of recent capital inflows into Latin America are discussed. It is argued that these inflows are partly explained by conditions outside the region, like recession in the United States and lower international interest rates. This suggests the possibility that a reversal of those conditions may lead to a future capital outflow, increasing the macroeconomic vulnerability of Latin American economies. Policy options are argued to be limited.

JEL Classification: G1, F41

Suggested Citation

Calvo, Guillermo A. and Leiderman, Leonardo and Reinhart, Carmen M., Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors (August, 1992). IMF Working Paper, Vol. , pp. 1-66, 1992. Available at SSRN: https://ssrn.com/abstract=884895

Guillermo A. Calvo (Contact Author)

Columbia University - School of International & Public Affairs (SIPA) ( email )

420 West 118th Street
New York, NY 10027
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Leonardo Leiderman

Tel Aviv University - Eitan Berglas School of Economics

P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel

Bank of Israel

P.O. Box 780
Jerusalem, 91907
Israel

Carmen M. Reinhart

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
389
Abstract Views
1,395
rank
76,426
PlumX Metrics