EMs right to be wary of rapid capital inflows

Behind the rhetoric of global currency wars lies a more fundamental concern that loose monetary policy in the developed economies will lead to rapid and destabilising capital inflows to the emerging world. As things stand, inflows to EMs as a whole are still low by recent standards. But some countries are already experiencing problems and, with monetary policy in the US and elsewhere set to remain extremely loose for some time, more are likely to do so over the coming years.