Foreign capital flowing into emerging markets can be dangerous, but it also has its benefits. Developing countries need to protect themselves against the risks while profiting from the dangers. But how? Here are three things they need to do.
When QE2 is complete, the Fed's bond purchases will have injected $1.7 trillion in liquidity into the markets since 2008 in an effort to boost corporate investment in new production and new jobs in the U.S. Instead, companies are taking cash raised here and investing it in emerging markets.
Three years ago, the financial crisis spread across the globe, dragging the world into its deepest recession in seven decades. Now, the U.S. recovery is losing momentum, but economists say this time, when America sneezes, the world doesn't have to catch a cold.
In a new article, political scientist Ian Bremmer and economist Nouriel Roubini assert that the free-market system of capitalism has been so damaged by the recent financial crisis that the West's era of political and economic dominance may be gone for good.
As the Russian wheat shortage sends food prices soaring, investors should note that such stories are going to become only more common as the developing world expands. For this and other reasons, the agriculture sector is worth considering.