Post-1980 Global Liquidity Data: Exponential Flows
This chapter delivers an analysis of the indicators related to the growth of financial capital in international markets since the beginning of the 1980s. It sets out the evolution of international financial markets in order to then investigate the reasons behind the remarkable increase of capital flows and the causes behind the redirection of some to the financial markets of middle-income countries. The chapter briefly describes the historic dynamics of the markets and concludes that the best way of investigating the causes behind the rapid increase of financial capital in international markets and its direction to emerging economies is by structuring the factors involved into a supply-push and demand-pull framework. The question of why developed economies generated a considerably increased level of financial flows since the 1980s can be answered through the identification of the supply-push factors (Chapter 4), whereas answering the question of why middle-income developing countries suddenly became an attractive outlet for this liquidity is central to the determination of the demand-pull indicators (Chapter 5).1
KeywordsFinancial Market Institutional Investor Bank Lending Financial Flow Financial Innovation
Unable to display preview. Download preview PDF.