2:00—3:00 PM Washington DC Time

Capital Flow Volatility in Latin America—Will Next Time Be Different?


  • Laura Alfaro, Warren Albert Professor, Harvard Business School; Former Minister of National Planning and Economic Policy, Costa Rica
  • Gerardo García López, Director General of Central Banking Operations, Banco de México (Bank of Mexico)
  • José de Gregorio, Dean of the School of Economics and Business, Universidad de Chile; Former Governor, Central Bank of Chile
  • Luis Oganes, Head of Currencies, Commodities and Emerging Markets Research, JP Morgan
  • Livio Stracca, Deputy Director General International and European Relations, European Central Bank


  • Liliana Rojas-Suarez, Senior Fellow and Director of the Latin America Initiative, Center for Global Development


Extreme episodes of capital flow volatility have long been a concern for policymakers in Latin America because of the threat that they pose to macroeconomic and financial stability. In recent times, the region has seen substantial capital outflows during the 2013 Taper Tantrum and the 2020 Covid-19 shock, which triggered even larger outflows.

The response of Latin American policymakers to the Covid-19 shock was different from past episodes of extreme volatility. This time, they cut interest rates, intervened in bond markets, and loosened fiscal policy. What lessons can be learned from Latin America’s recent experience? Looking forward, what might happen when advanced economies start tightening their monetary policy?

In this panel, policymakers, academics, and private sector representatives will discuss changes in patterns of capital flows and what mix of policies can help to mitigate capital flow-related risks.

If you have questions for our panelists, please submit them to, tweet @CGDev #CGDTalks, or submit your comments via YouTube.

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