Global Liquidity and Financial Flows to Developing Countries
Global Liquidity and Financial Flows to Developing Countries
New trends in emerging markets and their implications1
This chapter considers some of the implications of recent trends in global liquidity and financial flows to emerging markets before the current financial and economic crisis, with particular emphasis on the strong revival in capital flows to developing countries after the slump following the 1997–1998 financial crisis in East Asia. It argues that following liberalization of financial markets, the resurgence in cross-border flows can be better explained by supply-side factors than the financing requirements of recipient countries. It explains the significance of foreign investment as a source of corporate finance and discusses some of the lessons that can be learned from the sub-prime mortgage crisis in the United States. Finally, it evaluates the consequences of curbing the monetized deficit in order to appease financial capital.
Keywords: liquidity, emerging markets, economic crisis, capital flows, developing countries, financial crisis, financial markets, supply-side factors, foreign investment, sub-prime mortgage crisis
Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .
