Capital inflows and real exchange rate appreciation in latin america buqzhns

Capital inflows and real exchange rate appreciation in latin america

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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. Get this from a library! Capital Inflows and Real Exchange Rate Appreciation in Latin America : the Role of External Factors. [Leonardo Leiderman; Guillermo Calvo; Carmen Reinhart] -- 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 The characteristfcs 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 The characteriscs of recent capital inflows to Latin America are discussed. It is argued that these inflows are partially explained by economic conditions outside the region, like the recession in the United States and lower international interest rstes. The importance of external factors suggests that a reeversal in those condiitons may lead to a future capital outflow, increasing the This paper deals with some of the most important aspects of Latin America's experience with capital flows during the last twenty-five years. The paper begins with a historical analysis. I then deal with the sequencing of reform and discuss issues related to the relationship between capital flows, real exchange rates, and international 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

Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors Article (PDF Available) in IMF Staff Papers 40(1):108-151 · March 1993 with 431 Reads

The characteristics of recent capital inflows into Latin America are discussed. It is argued that these inflows are partly explained by conditions outside the r. Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors. IMF Working Paper No. 92/62. 66 Pages Posted: 15 Feb 2006. The characteristfcs 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, fncreasing the macroeconomic vulnerability of 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.

27 Jun 2003 It is found that the degree of appreciation in RER associated with capital inflow is uniformly much higher in Latin American countries compared to

Capital inflows have the potential to cause a Dutch Disease-type situation. The RBI real exchange rate, in spite of the intervention, is inconsistent with external balance RBI was intervening to keep the real exchange rate from appreciating. xix below, the experience of the Latin American countries in 1998 and the Asian nominal exchange rates (we will argue below that the real exchange rate is more decrease in the RER (an appreciation) indicates a decline in the country's improvement in the foreign terms of trade), or increased capital inflows, will both result Argentina and a number of other countries in Latin America have recently.

This paper deals with some of the most important aspects of Latin America's experience with capital flows during the last twenty-five years. The paper begins with a historical analysis. I then deal with the sequencing of reform and discuss issues related to the relationship between capital flows, real exchange rates, and international

In economics, hot money is the flow of funds (or capital) from one country to another in order to In the next destination, capital inflows create a boom that is accompanied by Furthermore, hot money could lead to exchange rate appreciation or even For example, when hot money originated from the U.S. enters China, Latin America's experience with capital flows during the last twenty-five years. inflows have been associated with real exchange rate appreciation, while. 6. In the case of Latin American countries, capital flows result in real exchange rate appreciation in the absence of capital controls. This real exchange rate investments inflows as percentage of GDP and trade balances on goods and services. Latin American economies are facing the consequences of falling commodity prices, the appreciation of the dollar, the deceleration of China, the uncer- either because they destined to fail to affect real exchange rates or because the effects commodity prices and large capital inflows to accumulate foreign assets (as well.

1 Mar 1993 The characteristics of recent capital inflows into Latin America are discussed. It is argued that these inflows are partly explained by conditions

In most countries, the capital inflows have been accompanied by an appreciation in the real exchange rate, booming stock and real estate markets, faster economic growth, an accumulation of international reserves, and a strong recovery of secondary-market prices for foreign loans. Capital Inflows and Real Exchange Rate Appreciation in Latin America The Role of External Factors GUILLERMO A. CALVO, LEONARDO LEIDERMAN, and CARMEN M. REINHART* The characteristics of recent capital inflows into Latin America are dis-cussed. It is argued that these inflows are partly explained by conditions