EconStor >
The University of Nottingham >
Centre for Research in Economic Development and International Trade (CREDIT), The University of Nottingham >
CREDIT Research Papers, The University of Nottingham >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/65475
  
Title:Private capital inflows and macroeconomic stability in sub-Saharan African countries PDF Logo
Authors:Shibata, Miyuki
Morrissey, Oliver
Issue Date:2002
Series/Report no.:CREDIT Research Paper 02/21
Abstract:The 1990s have witnessed an increase in private capital inflows to sub-Saharan African (SSA) countries. Such capital flows are viewed as volatile and hence a threat to macroeconomic stability. A sudden reversal of capital inflows was one factor underlying the East Asian crisis of 1997. This paper begins with a brief review of theories of currency crises in the light of the East Asian financial crisis. From this, a number of 'crisis indicators', such as the rate of domestic credit expansion and level of foreign exchange reserves, are identified. The nature of the exchange rate regime is central to managing capital inflows and vulnerability to crisis. The paper then examines trends in exchange rate regimes and crisis indicators for five SSA countries in the 1990s. While there is evidence of increased pressure for real exchange rate appreciation in the 1990s, none of the indicators suggest that managing private flows poses a problem to the economies. One problem that is identified is the prevalence of large trade deficits that could be exacerbated by exchange rate appreciation.
Document Type:Working Paper
Appears in Collections:CREDIT Research Papers, The University of Nottingham

Files in This Item:
File Description SizeFormat
373763360.pdf336.94 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/65475

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.