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Article: Keeping the hot money out. (managing foreign capital inflows into East Asia)
- Article from:
- The Economist (US)
- Article date:
- January 24, 1998
CopyrightCOPYRIGHT 1998 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The bad news from East Asia has highlighted the difficulties of managing large flows of international capital
IT IS only a straw in the wind, but it tells a story. In 1996, when the global great and good made their annual pilgrimage to the Swiss Alps for the Davos meeting of the World Economic Forum, the theme of the conference was "sustaining globalisation". Unsurprisingly, given the recent failure of Asia to conform with economic expectations, next week's meeting will instead be devoted to "managing volatility".
Among economists, the past six months have been unsettling. In particular, the abrupt reversals in economies that were hitherto deemed miraculous ...