“Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors

In order to conduct a more detailed analysis of the real exchange rate dynamics a single equation error correction model was estimated, as pro- posed by Edwards, which accounted

o Model 1B consists of the real effective exchange rate of the rand (LREER), the real interest rate differential on the 10 year government bond between South Africa and the four

For example, negative real interest rates in the 1970s set in motion commercial bank lending to Latin America in the mid-1970s; and high interest rates and recession in the

Calvo, Guillermo, Leonardo Leiderman, and Carmen Reinhan, "Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors," Staff

' q n la Secci6n C del Grifico 3, se supone que la tasa nominal de inter& se incrementa con respecto a su nivel inicial (vease la discusi6n mis adelante).. TASA DE

Three main stylized facts emerge from the experiences of Brazil, Chile and Colombia: first, temporary shocks, including (but not necessarily limited to) the type of policy

Dependency Ratio, Foreign Capital Inflows and the Rate of Savings in Pakistan. Khan, Ashfaque Hasan and Hasan, Lubna and

( for the real exchange rate is selected by the AIC.).. For example,  −1  means the expected future sum of short-term real interest differentials,