March 1997 - Volume 34 - Number 1

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Causes of Capital Inflows and Policy Responses to Them

NADEEM UL HAQUE, DONALD MATHIESON, AND SUNIL SHARMA

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Some developing and transition countries are attracting large inflows of foreign capital that could destabilize their economies. To design policies that will enable them to guard against this danger, they need to identify what is driving the inflows.

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