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4 June - Unstable recovery in capital flows to developing and transition countries (South Centre)

Thursday, 09 June 2011 08:08

South_CentreThis paper argues that the surge in capital flows to developing and transition countries is generating exchange rate appreciation and exposing them to greater instability: developed countries will not be able to sustain their low interest rate policies indefinitely, and rises in interest rates in the past (particularly in the US) have led to crises in developing countries.

 

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