
- 1995/278 pages
Coping with Capital Surges:
The Return of Finance to Latin America
Hardcover: $49.95
ISBN: 978-1-55587-562-6
Paperback: $29.95
ISBN: 98-1-55587-581-7
Private capital flows to Latin America have increased dramatically since 1989, approximately doubling in volume each year. This book examines the possible causes and consequences of the new—and unforeseen—wave of investment, from both the borrower and the lender perspectives.
The authors first analyze foreign direct investment, securities, and bank lending, considering the motivations of investors in the U. S., Europe, and Japan, as well as the regulations affecting them. They then turn to the features of capital flows, their macroeconomic impact, and policy responses in three recipient countries: Argentina, Chile, and Mexico.
An important theme of the book is that, while the return of private capital flows to Latin America is to be welcomed, the mutual benefits will be sustainable only if governments in both source and recipient countries more effectively monitor and supervise the flows and, equally important, adequate macroeconomic measures are undertaken in the recipient countries.
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