Trends and Policy Trade-offs of Capital Flows in Latin America and the Caribbean: 2003-2008
نویسندگان
چکیده
This paper reviews trends in capital flows in Latin America and the Caribbean between 2003 and mid-2008 and its implications for monetary policy and financial stability. The financing structure that emerged during this period was more benign than in the past, due to a greater share of foreign direct investment and reduced reliance on foreign financing. Although traditional monetary policy trade-offs remained present, policy implications shifted partly due to changes in the monetary transmission mechanism. Financial stability focus on currency and maturity risk shifted to focus on credit, liquidity and market risk. JEL classification: E4, E5, E6, F0, F2, F3, G1, G3, H6 and O1. 1 E-mail addresses: Alejandro Jara ([email protected]) and Camilo E. Tovar ([email protected]). Bank for International Settlements. The views expressed are those of the author and do not necessarily represent those of the Bank for International Settlements. This is a revised version of the paper entitled ―Monetary and Financial Stability Implications of Capital Inflows for Latin American and the Caribbean‖. We thank Már Gudmundsson and Ramon Moreno for their comments to a previous version of this paper, research assistance by Rodrigo Mora and Sergio Vargas, and Sandra Gonzalez who kindly helped us revise the text. We also thank seminars participants at 2008 LACEA Annual Meeting in Rio de Janeiro, Brazil, and participants at the 40th Annual Monetary Studies Conference in Basseterre, St. Kitts. 26 / BUSINESS, FINANCE & ECONOMICS IN EMERGING ECONOMIES VOL. 5 NO. 1 2010
منابع مشابه
Economic policy Co-Movement in Latin America and the Caribbean
There have been numerous attempts at the formation of regional policy groupings within Latin America and the Caribbean (LAC). This paper analyses the similarities in macroeconomic policies pursued by member countries using realised correlation analysis on 26 LAC countries and observations covering the period 1970–2005. The study finds evidence of co-movement in monetary, fiscal, trade and capit...
متن کاملEthical Perspective: Five Unacceptable Trade-offs on the Path to Universal Health Coverage
This article discusses what ethicists have called “unacceptable trade-offs” in health policy choices related to universal health coverage (UHC). Since the fiscal space is constrained, trade-offs need to be made. But some trade-offs are unacceptable on the path to universal coverage. Unacceptable choices include, among other examples from low-income countries, to expand coverage for services wit...
متن کاملCapital Account Liberalization, Free Long-term Capital Flows, Financial Crises and Economic Development
The main objective of this paper is to review the theoretical issues and available empirical evidence on capital account liberalization. In addition to being of interest in its own right, capital account liberalizations is important to the debate on the New International Financial Architecture (NIFA) and to the post-Doha agenda at the World Trade Organization (WTO) in relation to foreign direct...
متن کاملDefining Pathways and Trade-offs Toward Universal Health Coverage; Comment on “Ethical Perspective: Five Unacceptable Trade-offs on the Path to Universal Health Coverage”
The World Health Organization’s (WHO’s) World Health Report 2010, “Health systems financing, the path to universal coverage,” promoted universal health coverage (UHC) as an aspirational objective for country health systems. Yet, in addition to the dimensions of services and coverage, distribution of coverage in the population, and financial risk protection highlighted by the report, the conside...
متن کامل