Back Page: Polls And Stats – Emerging Markets Capital Flows At Risk

Emerging Markets Capital Flows At Risk

“There is more risk of greater cyclicality in capital flows to emerging economies in the next 18–24 months than seemed likely a few months ago … Policymakers in emerging economies may have a long enough memory to avoid some of the pitfalls associated with such a boom-bust cycle in flows, but not all may be quite so restrained, especially in capital-hungry, low-income economies. Nor is it likely that investors will be quite so disciplined. The risk of market participants being unprepared for a reversal of rates is real and needs to be seriously considered to avoid disruption.”

– Institute of International Finance

Emerging Markets Economies: Capital Flows ($ billion)

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