The Economist writes about the boom in emerging economies and their stockmarkets + pros and cons + the alarming memories of the early 1990s + other viewpoints @ http://www.economist.com/finance/displaystory.cfm?story_id=10136509
I think the analysis should be a wake-up call for emerging markets like India and China. Vast capital inflows can harm economies in several ways. Not only can they inflate asset bubbles and spur excessive borrowing, but they can also cause a steep rise in the exchange rate, damaging the competitiveness of export sectors.
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