International

Alarm bells ring amid massive flight of capital from emerging economies

Over the past few days, the money markets of the emerging countries have been struck by a major movement of capital withdrawals. As Martine Orange reports, the flight of capital has alarmed international monetary authorities who fear a potential destabilization of the whole of the world’s monetary system.

Martine Orange

Amid much talk at the current World Economic Forum at Davos, in Switzerland, of a broad return to economic growth, the world’s emerging economies have suddenly found themselves confronted with a massive drain of capital which, over the past few days, has seen money markets shaken by what is nothing short of a major seism.

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