Comment: Contagion threat still present

An increasing number of emerging market economies (EMEs) are finding that they are able to borrow money in international capital markets, and on historically favourable terms.

COMMENT BY CENTRALBANKNET

But the volume of these flows and the low risk premiums demanded by investors has been a mounting source of concern to central bankers, as demonstrated by an article in the Bank of England's most recent Financial Stability Review.

The authors note that net capital flows to EMEs are at historically

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