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Inflows in sentence

636 examples of Inflows in a sentence

South Korea’s admission to the OECD required its government to dismantle capital controls, exposing the economy to inflows of short-term “hot money.”
By next year, China’s outward investment is likely to reach over $100 billion annually – bringing it close to parity with inflows.
This obvious externality required policy responses in the emerging countries: limits on capital inflows, reserve accumulation, and measures to restrict credit and restrain asset-price inflation.
Moreover, the pattern of accumulating reserves via current-account surpluses, net private capital inflows, or both – a legacy of the 1997-1998 Asian financial crisis – will continue and perhaps become even more pronounced.
True, inward FDI reached about $70 billion in 2006, but this is below the 1998-1999 peak, and a large share came from Latin American firms investing in neighboring countries, whereas inflows from Europe and the United States have fallen.
Likewise, FDI inflows have been expanding only in resource-intensive sectors, while falling in services and practically stagnating in manufacturing.
But the fundamental question is how to manage the impact of short-term capital inflows.
Moreover, capital inflows frequently finance consumption or unsustainable real-estate booms.
China has not liberalized its capital account, but short-term inflows are now driving stronger upward pressure on the renminbi (and larger offsetting reserve accumulation by the People’s Bank of China) than can be explained by the current-account surplus and FDI flows.
But while perfect policy is unattainable, partly effective controls can still play a useful role if targeted at the interface between short-term inflows and domestic credit cycles.
After all, capital inflows cause the greatest harm when they drive rapid increases in credit-financed consumption or real-estate speculation.
Tax instruments and reserve requirements that put sand in the wheels of short-term capital inflows should be combined with strong countercyclical measures, such as additional capital requirements, to slow domestic credit creation.
In the last four years, inflows of private capital into frontier economies have been nearly 50% higher (relative to GDP) than flows into emerging market economies.
By and large, the surge in capital inflows has boosted consumption rather than investment in recipient countries, exacerbating economic volatility and making painful financial crises more frequent.
The second problem concerns the possibility that capital inflows may be harmful to growth, even if we leave aside concerns about financial fragility.
Capital inflows in economies that suffer from low investment demand fuel consumption, not capital accumulation.
In these economies, capital inflows may well retard growth rather than stimulate it.
Liberalization of foreign capital inflows will end the bureaucratic stickup of foreign investors.
Tax changes encouraging US corporations to repatriate their profits would unleash a wave of capital inflows, pushing up the dollar still further.
Whereas Brazil, India, and Indonesia have responded to surging inflows with new capital-account regulations, South Africa and Turkey have allowed capital to flow freely across their borders.
But domestic prudential measures could have only a limited effect on the rate of credit growth, because the growth was driven primarily by booming capital inflows.
Or was it because politicians benefited from the economic boost that inflows of short-term “hot money” provide, and thus were willing to ignore the consequences?
Capital inflows produced a wealth effect, but only while they lasted.
In China, for all of its massive problems, things continue to go right not least because of huge inflows of foreign direct investment and the imminent benefits of WTO membership.
So, despite the rise in the household saving rate, unless federal government policies change to shrink America’s future budget deficits, the US will continue to be dependent on capital inflows from the rest of the world.
Similarly, following the nerve-agent attack in England on former Russian double agent Sergey Skripal and his daughter, the United Kingdom has implemented new measures aimed at preventing money laundering, with capital inflows from Russia to come under the closest scrutiny.
Capital inflows driven by that bet are over.
It also invites destabilizing hot-money capital inflows.
And while only 37% of inflows in 2006 were “hot money” that can leave at a moment’s notice, last year such inflows accounted for 69% of the total.
Massive capital inflows caused real-estate and stock-market bubbles in the US and parts of Europe.
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