They cite risks by flow of capital toward to the

Latin America runs the risk of facing consequences of capital inflow from advanced economies (USA and Europe) which are running low or zero interest, and that financial flows, especially in stock markets rise, could create a "speculative bubble".

The warning was Professor and director of the IESE Business School of the University of Navarra, Ahmad Rahnema Alavi, who called yesterday to be careful with the managers of these funds, to give a lecture on "Latin America to the global crisis." "Impact and prospects", in the Barna business school, with a large number of the country's business leaders.

Indicated that US interest rates have been at 0%, and in economies as Chile have increased from 0% to 4%, Colombia 4% and 9% Brazil, encouraging the entry of capital and foreign investment in Latin America.

But this is a problem, because on the one hand go up the u000aBooking International (Rhine), investment, and generates more liquidity by the entry of more dollars and euros, but this increases the money supply, and therefore inflation rises. Before this, central banks take away liquidity to the market by buying bonds, increased the rate of interest and enters more foreign capital "and need to be stopped that".

To put a stop to this cycle, Brazil put a tax to capital inflows. In that context, he cited the marking of the Brazilian Minister that this is "a currency war".

To deal with the behavior of the world during 2000-2010, economy the Economist of the IESE said that today China and India buy Colombia, Chile and Peru, and that there are two groups of countries in the region linked to Asia and America.

Share this article

Digg it!

del.icio.us

MySpace

Facebook

Fark

Reddit

Newsvine