External capital flows in Latin America and the Caribbean in the 1990s: Experiences and policies

This article analyses the experiences of a group of Latin American and Caribbean countries with high inflows of external capital in 1992-1996 and places them within the context of the capital movements which have taken place in the region since 1977. Over the last two decades, capital flows to the region have been marked by their great variability: periods of high inflows of capital have alternated with periods of low inflows. In the three-year period 1992-1994, there was a heavy inflow of capital which was concentrated in a few countries, was more volatile because its composition changed in the direction of portfolio investments, and continued to be high in 1995-1996 in some countries.