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Bibliografía al final de cada capítulo.

Foreign Capital in Latin America: An Overview /
José Antonio Ocampo, Roberto Steiner External Capital Flows to Argentina /

José María Fanelli, Mario Damill
Chile: The Origins and Consequences of External Capital /
Manuel R. Agosin, J. Rodrigo Fuentes, Leonardo Letelier The Macroeconomic Effects of External Capital: Colombia /

Mauricio Cárdenas S., Felipe Barrera O. Financial Markets and Capital Flows in Mexico /

Jaime Ros

In the early 1990s, foreign capital flowed into some Latin American countries in quantities not witnessed for over a decade. Argentina, Chile, Colombia and Mexico experienced particularly large inflows. Foreign Capital in Latin America measures the economic impact of capital inflows in these four countries, with an emphasis on the effect of market-oriented financial and exchange policies. Macroeconomic management of the flows is evaluated by analyzing the role of the real exchange rate, sterilization efforts, the use of direct controls, and other economic policies. Finally, the country studies examine how expanded capital resources affect investment, which greatly determines to what extent such inflows contribute to economic growth. Since the country studies demonstrate there is no single formula for managing increased capital flows, a principal recommen dation of Foreign Capital is that countries develop policies that are specific to the type of resources involved and provide for their efficient absorption, without contributing to macroeconomic instability.