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Country Responses to Massive Capital Flows

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  • Montes, M.F.

Abstract

The emergence of a select group of developing countries as destinations for private portfolio investments in the 1990s (and the subsequent peso crisis in Mexico in 1994) has rekindled the old issues about the responsabilities and capacities public authorities have with regard to managing the absorption of these resources. This paper discusses the purposes public authorities might have in resisting these flows and presents a model of how authorities might intervene through their domestic financial system.

Suggested Citation

  • Montes, M.F., 1996. "Country Responses to Massive Capital Flows," Research Paper 121, World Institute for Development Economics Research.
    • Handle: RePEc:fth:wodeec:121
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    References listed on IDEAS

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    Cited by:

    1. Helmut Reisen, 1998. "Sustainable and Excessive Current Account Deficits," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 25(2), pages 111-131, January.

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    More about this item

    Keywords

    INVESTMENTS; DEVELOPING COUNTRIES; CAPITAL MARKET;
    All these keywords.

    JEL classification:

    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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