NATIONAL BUREAU OF ECONOMIC RESEARCH, INC.

1050 Massachusetts Avenue, Cambridge, MA 02138

NINETEENTH ANNUAL MACROECONOMICS CONFERENCE

April 2-3, 2004

The Royal Sonesta Hotel

Cambridge, MA

WHEN IT RAINS IT POURS:

PROCYLICAL CAPITAL FLOWS AND MACROECONOMIC POLICIES

GRACIELA KAMINSKY

George Washington University and NBER

CARMEN REINHART

University of Maryland and NBER

CARLOS VEGH

UC, Los Angeles and NBER

Discussants: GITA GOPINATH, University of Chicago

ROBERTO RIGOBON, MIT and NBER