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Capital Inflows in a Small Open Economy: Costa Rica

Author

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  • Leon, Jorge

Abstract

This document illustrates the inflows of capital to a small and open economy such as Costa Rica using the Metzler Diagram. The simplicity of the Metzler Diagram provides clarity to understand the motivation for the inflows of capital, as well as a framework to analyze the policy options available to the policy-makers.

Suggested Citation

  • Leon, Jorge, 2013. "Capital Inflows in a Small Open Economy: Costa Rica," MPRA Paper 44512, University Library of Munich, Germany, revised 2013.
    • Handle: RePEc:pra:mprapa:44512
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    File URL: https://mpra.ub.uni-muenchen.de/44512/1/MPRA_paper_44512.pdf
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    Cited by:

    1. Leon, Jorge & Vega, Melissa, 2013. "What is driving the Capital Inflows to Costa Rica? Risk Premium and Interest Rate Differentials," MPRA Paper 59215, University Library of Munich, Germany.

    More about this item

    Keywords

    Capital Inflows; Open Economy; Metzler;
    All these keywords.

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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