Capital Flows to Emerging Markets: Goodbye the Golden 1990s?
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During the 1990s, emerging countries enjoyed dramatic inflows, which boosted their financial resources but also increased their vulnerability to financial turbulence. However capital flows to emerging markets have steadily declined since their peak of nearly US$240 bn. in 1995 according to the IMF. A key issue is whether these changes, both the sharp declines and changes in composition of the flows, are cyclical rather than structural, long term or short term.
KeywordsForeign Direct Investment Mutual Fund Pension Fund Latin American Country Hedge Fund
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