{"id":1737,"date":"2011-07-05T16:20:37","date_gmt":"2011-07-05T14:20:37","guid":{"rendered":"http:\/\/www.poleconomix.gr\/portal\/?p=1737"},"modified":"2011-07-05T16:20:37","modified_gmt":"2011-07-05T14:20:37","slug":"the-capital-flow-conundrum","status":"publish","type":"post","link":"https:\/\/www.poleconomix.gr\/portal\/the-capital-flow-conundrum\/","title":{"rendered":"The capital flow conundrum"},"content":{"rendered":"<p><a href=\"http:\/\/www.voxeu.org\/index.php?q=node\/5905\" target=\"_blank\">Dadush, Uri\u00a0<\/a>&amp; <a href=\"http:\/\/www.voxeu.org\/index.php?q=node\/6080\" target=\"_blank\">Stancil, Bennett<\/a>.<\/p>\n<p>Economists and policymakers alike tend to assume that capital should flow from rich to poor countries, but in recent years the opposite has happened. This column explains why and warns that developing countries should not assume they can or should run large current deficits simply because they are poor.<\/p>\n<div>\n<p>The belief that capital should be moving from rich, capital-abundant countries, to poor, capital scarce ones is so widespread that it has practically become a creed (Lucas 1990, Summers 2010, and Wolf 2010).<\/p>\n<p>But this assumption is not only simplistic; it is also dangerous. It can encourage developing countries to attract capital they do not need or cannot absorb. It can also exacerbate international tensions by leading rich countries that run large current-account deficits to believe that their trade deficits are a result of anomalous policies in poor countries, instead of the outcome of their own policies and economic structures.<\/p>\n<p><strong>\u03a0\u03b7\u03b3\u03ae: <\/strong>Voxeu<\/p>\n<p><a href=\"http:\/\/www.voxeu.org\/index.php?q=node\/6718\" target=\"_blank\">\u03c0\u03bb\u03ae\u03c1\u03b5\u03c2 \u03ba\u03b5\u03af\u03bc\u03b5\u03bd\u03bf<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dadush, Uri\u00a0&amp; Stancil, Bennett. Economists and policymakers alike tend to assume that capital should flow from rich to poor countries, but in recent years the opposite has happened. This column explains why and warns that developing countries should not assume they can or should run large current deficits simply because they are poor. The belief [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,39],"tags":[25],"class_list":["post-1737","post","type-post","status-publish","format-standard","hentry","category-18","category-39","tag-25"],"_links":{"self":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/1737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/comments?post=1737"}],"version-history":[{"count":1,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/1737\/revisions"}],"predecessor-version":[{"id":1738,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/1737\/revisions\/1738"}],"wp:attachment":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/media?parent=1737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/categories?post=1737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/tags?post=1737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}