caa a22 4500 397566263 CHVBK 20180308164829.0 cr unu---uuuuu 161202e199602 xx s 000 0 eng 10.1093/wbro/11.1.61 doi (NATIONALLICENCE)oxford-10.1093/wbro/11.1.61 MACROECONOMIC ADJUSTMENT TO CAPITAL INFLOWS: LESSONS FROM RECENT LATIN AMERICAN AND EAST ASIAN EXPERIENCE [Elektronische Daten] [Vittorio Corbo, Leonardo Hernández] Capital inflows to some developing countries have increased sharply in recent years. Impelled by better economic prospects in those countries, lower international interest rates, and a slowdown of economic activity in the capital-exporting countries, the inflows have furnished financing much needed to increase the use of existing capacity and to stimulate investment. But capital inflows can bring with them their own problems. Typical macroeconomic repercussions have been appreciation of the real exchange rate, expansion of nontradables at the expense of tradables, larger trade deficits, and, in regimes with a fixed exchange rate, higher inflation and an accumulation of foreign reserves. Should government intervene to limit some of these side effects—and if so, how? The question is especially pressing in the wake of the Mexican crisis of December 1994. This article looks for answers in the experience of four Latin American and five East Asian countries between 1986 and 1993, examining the effects of the capital inflows on the economy and comparing the different ways in which these countries responded to the problem of "too much” capital. © 1996 The International Bank for Reconstruction and Development/The World Bank Articles nationallicence Corbo Vittorio aut Hernández Leonardo aut The World Bank Research Observer Oxford University Press 11/1(1996-02), 61-85 0257-3032 11:1<61 1996 11 wbro https://doi.org/10.1093/wbro/11.1.61 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1093/wbro/11.1.61 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Corbo Vittorio aut NATIONALLICENCE 700 1- Hernández Leonardo aut NATIONALLICENCE 773 0- The World Bank Research Observer Oxford University Press 11/1(1996-02), 61-85 0257-3032 11:1<61 1996 11 wbro Metadata rights reserved CC BY-NC-4.0 http://creativecommons.org/licenses/by-nc/4.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-oxford