The aim of this study was to test uncovered interest parities for Argentina, Brazil, Chile, and Mexico, for the January 1990-December 2001 period, with the use of the rational expectation hypothesis.We also intend to evaluate the degree of mobility of foreign capital in these political...

In this article we estimate the relation between inflation and trade openness [e.g; Romer (1993)] using modern panel data techniques. Our rationale is as follows: The higher the gains, in terms of product, in generating an inflationary "surprise", the greater the incentives will be for the...

This paper shows that the Feldsteins & Horioka (1980) test does not measure capital mobility, but just the variability between domestic and external savings. Furthermore, it concludes that the Coakley, Kulasi & Smith (1996) test for current account solvency, is a necessary, but not sufficient,...

This paper shows that the Feldsteins & Horioka (1980) test does not measure capital mobility, but just the variability between domestic and external savings. Furthermore, it concludes that the Coakley, Kulasi & Smith (1996) test for current account solvency, is a necessary, but not sufficient,...