…of the puzzle – the puzzle being why poor Asian economies are lending so much money to the United States. Hubbard’s point boils down to this: China and other developing…

…realignments is not good. That’s because a small change in a fixed exchange rate typically leads to increased speculative flows, not decreased speculative flows, which means that the fixed exchange…

…deficit to around $750bn, or over 6% of GDP. Yet private capital flows into the US slow because of fears of further dollar depreciation. Asian CBs must therefore buy even…

…Asian central banks accounting for 86 per cent of flows. A similar picture is emerging for 2004. … The People’s Bank of China has let it be known that China…

…contributions ($25 or $44) and what she got out in undiscounted cash flows ($21,000 or $23,000). While they don’t say what the timing of these cash flows were, they know…

…example. Link to graph #1 The implication in the typical circular flow is that what flows out of households is equal to what flows into firms. GDP flowing out =…

…to contracting capital flows and their impact on GDP growth, inflation and unemployment. The measures include a rise in interest rates, currency depreciation, the sale of foreign exchange reserves and…

…the time for its crisis-management policies and its advocacy of deregulating capital flows. In retrospect, Fischer’s arguments in favor of capital account liberalization appear overly zealous, and he has drawn…

…values, were the basis of the economy’s growth. The flows of goods and capital between the two countries established a pattern of co-dependency between them. But the crisis revealed the…

…vulnerability. Capital flows can increase financial fragility, and the rapid transmission of financial volatility across borders has been recognized since the 1990s. Graciela L. Kaminsky, Carmen M. Reinhart and Carlos…