The policy implications of the Tequila effect

  • Ricardo Ffrench-Davis
Part of the St Antony’s Series book series (STANTS)


Latin America has been strongly affected by the changes that have occurred in capital flows over the last twenty years. During the 1970s, a large supply of funds was made available to the region; then, during the 1980s, there was a serious shortage of financing, and the region became a net exporter of funds. Between 1991 and 1994, it became a net recipient of large amounts of funds again, only to experience another sharp reduction of some of the main flows in late 1994 and early 1995, and a renewed access in 1996–97. In 1998–99, Latin America has been experiencing a new shortage of external financing, aggravated by a general worsening of the terms of trade. A crisis centred in Asian countries has now been the origin of a new recessive macroeconomic adjustment in the region.


Exchange Rate Current Account Real Exchange Rate Capital Flow Capital Inflow 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Ricardo Ffrench-Davis 2000

Authors and Affiliations

  • Ricardo Ffrench-Davis
    • 1
    • 2
  1. 1.ECLACSantiagoChile
  2. 2.University of ChileSantiagoChile

Personalised recommendations