links for 2010-10-13

According to The Institute of International Finance, the capital flows to emerging markets have risen to $825 billion as a result of the ultra-low monetary policy in rich countries. With meagre yields in their own countries, great herds of investors are migrating across the global plains in a frantic search for yield. They are running the risk of destabilising these markets. The amount of capital flows into Asian and Latin American markets have already exceeded the last peak in 2006-2007 with inflows into Asian economies 60% above the prior level. Research by the IMF has shown that in the past monetary easing has transferred itself almost completely to emerging economies regardless of their economic circumstances.