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Country Responses to Massive Capital Flows

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  • Manuel F. Montes

Abstract

The emergence of a select group of developing countries as destinations for private portfolio investment in the 1990s (and the subsequent peso crisis in Mexico in 1994) has rekindled the old issues about the responsibilities 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

  • Manuel F. Montes, 1996. "Country Responses to Massive Capital Flows," WIDER Working Paper Series wp-1996-121, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-1996-121
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    File URL: https://www.wider.unu.edu/sites/default/files/WP121.pdf
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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.
    2. Griffith-Jones, Stephany & Montes, Manuel F. & Nasution, Anwar (ed.), 2001. "Short-Term Capital Flows and Economic Crises," OUP Catalogue, Oxford University Press, number 9780198296867.

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