Early Warning Indicators for Latin America

we explore the performance of a set of early warning indicators for a group of latin american economies under the endogenous cycle perspective. for this group of countries, the paper confirms the results of previous work on industrialized countries, which indicate that a combination of asset prices and credit provides valuable information of probable future financial crises. however, we go a step further in the analysis of emerging economies and find that a combination of capital flows from abroad and credit is an even superior leading indicator of such events.