Abstract
In the 1990s Latin America witnessed the return of foreign capital to the region, after having been left aside as a destination for international lending during the ‘lost decade’ of the 1980s (CEPAL, 1998: ch. III). This has been a mixed blessing, however. Clearly, by easing the external constraint, capital inflows contributed to the resumption of growth during the 1990s. But mounting trade deficits and external indebtedment, along with an increasing fragility in the capital account, raised once again in the agenda of several Latin American countries the shadow of currency and debt crises by the end of the 1990s (French-Davis, 2000). The currency crises of Mexico in 1994, Brazil in 1999, and especially that of Argentina and Uruguay in 2002, highlighted the gravity of this problem.
Gabriel Porcile and Ricardo Viana grateful acknowledge the support of CNPq. André Fernandes, Maurizio Pugno and the participants to the Cassino Conference on the Keynesian Legacy in Macroeconomic Modelling offered useful comments. Usual disclaimers apply.
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© 2007 Marcelo Curado, Gabriel Porcile and Ricardo Viana
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Curado, M., Porcile, G., Viana, R. (2007). Technology, Capital Flows and the Balance of Payments Constraint in a Structuralist North—South Model. In: Arestis, P., Zezza, G. (eds) Advances in Monetary Policy and Macroeconomics. Palgrave Macmillan, London. https://doi.org/10.1057/9780230800762_15
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DOI: https://doi.org/10.1057/9780230800762_15
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