About the product
In the 1990’s, the economic performance of the Latin American and Caribbean economies was highly dependent on capital inflows into the region. Access to external financing coupled with better macroeconomic management, boosted growth and brought inflation down considerably. However, the processes of expansion and contraction on international financial markets led to volatility in international capital movements, which resulted in an unstable growth path. This publication discusses the composition and volatility of financial flows into Latin American and Caribbean countries. Indicators of external vulnerability and macroeconomic performance are also analyzed.
