"Investment and cash flows to emerging nations will surge to nearly $1 trillion dollars this year, adding pressure to developing economies already overheating, a trade group of the world’s largest banks said Monday.
Strong expansion in Asia and Latin America, combined with low interest rates and sluggish growth in advanced economies, are the main factors fueling the capital flows, according to the Institute of International Finance. The group forecasts $960 billion moving from rich to emerging economies in 2011 and topping $1.04 trillion next year.
Global banks fear governments may over use capital controls — rather than fiscal or monetary policy — to put the brakes on such “hot money.”
at http://blogs.wsj.com/economics/2011/01/24/1-trillion-to-flow-into-emerging-nations-in-2011/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Feconomics%2Ffeed+%28WSJ.com%3A+Real+Time+Economics+Blog%29
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