High rates of inflation are a perennial problem in Latin American and Caribbean (LAC) countries. This article attempts to identify the factors that initiate these inflationary episodes using observations on 31 LAC countries between 1970 and 2006. The study finds that the key determinants of...

A large body of literature exists on the potential impact that capital account liberalization has had on uncovered interest rate parity. However, it can also have important effects on domestic bank spreads by providing economies of scale and scope and increasing competitive pressures. This...