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

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 the recession in the United States and lower international interest rates. The importance of external factors suggests that a reversal of those conditions may lead to a future capital outflow, increasing the macroeconomic vulnerability of Latin American economies. Policy options, it is argued, are limited.

• Publication year

  1992

• Venue

  Social Science Research Network

• Publication date

  1992-08-01

• Fields of study

  Economics

• Identifiers
  DOI 10.2307/3867379
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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