Today, Chile imposes no barriers to the inflow of capital.

When that capital inflow stopped, asset prices in Greece fell, and so did demand for labor in the capital goods sector.

The fall in the capital inflow would therefore bring with it a fall in the trade deficit.

Investors funding the capital inflow and the country receiving the money always think up reasons why this time the inflow is sustainable, because it reflects some supposed permanent transformation of fundamentals.

Of this vast capital inflow, overseas Chinese from Hong Kong, Taiwan, Macao and Southeast Asia delivered the lion s share.

The international balance of payments remains in surplus, and there is still a net capital inflow despite the global credit crunch.

The other way the current account deficit could come to an end is if the inflow of capital into America stops.

Since the peak annual rate of capital inflow was 803 billion (in 2006), the increased household saving has the potential to eliminate almost all of America s dependence on foreign capital.

Gateway would help 'control the inflow of information'

So the dollar would have to stay at its current level to continue to create the large trade deficit and resulting capital inflow.

Second, perhaps the inflow of capital into America was and remains justified perhaps there is something uniquely valuable about investments in America today.

The annual capital inflow is equal each year to the US current account deficit the sum of the trade deficit plus the net interest and dividends that America s government and businesses owe to the rest of the world. The fall in the capital inflow would therefore bring with it a fall in the trade deficit.

But the eurozone can increase its inflow of foreign capital only if it has a current account deficit, i.e., if it increases its imports relative to its exports.

Perhaps the speculative inflow scenario will play out, but in slow motion.

Instead of capital flowing from rich to poor, just the opposite happened it flowed from poor to rich, the overwhelmingly largest stream going to the US, whose rate of capital inflow is now the largest of any country, anywhere, anytime.

As the late Rudi Dornbusch (who preceded me as the author of this series of commentaries) used to say, unsustainable capital inflows always last much longer than economists, who tend to focus firmly on the fundamentals, believe possible. Investors funding the capital inflow and the country receiving the money always think up reasons why this time the inflow is sustainable, because it reflects some supposed permanent transformation of fundamentals.

The key is to reflect on six kinds of capital goods business capital, infrastructure, human capital, intellectual capital, natural capital, and social capital.

Without an inflow of new blood and new ideas, the old Continent's economic future looks bleak.

One country s inflow of EU money is thus another country s outflow and these are grants, not loans.

Moreover, establishing controls on one type of inflow simply leads to its being disguised in other forms.

That mass delusion, Dornbusch argued, keeps the inflow going long after it should come to an end.

As for the rest of Hong Kongers, all they can feel towards the swamping inflow is resentment.

The annual capital inflow is equal each year to the US current account deficit the sum of the trade deficit plus the net interest and dividends that America s government and businesses owe to the rest of the world.

For example, an inflow of oil money often leads to currency appreciation a phenomenon called the Dutch Disease .

Capital Shrugged

Damming Capital

Capital flight

Capitals of Capital

Capital master plan

'A capital idea!'

'Capital! Let's go!...

Outside the capital

The fact that so much of the risk from a decline in the dollar falls on those investing in America means that the capital inflow has already gone on much longer than any fundamentals watching economist including me would have believed possible.

In this interpretation, wages were eroded and jobs were lost because of the inflow of poorly qualified and cheap central Europeans.

My greatest worry is not Putin but that Russia will face an excessive inflow of foreign portfolio investment again, as in 1997.

Bank Regulation s Capital Mistake

My Body, My Capital?

When Capital Markets Fail

Rethinking Malaysia s Capital Controls

The Bankers Capital War

This includes capital punishment.

Capital flows have reversed.

Consider banks capital requirements.

Bratislava, capital of Slovakia.

Riyadh, the Saudi capital.