The truth is that before the euro and the capital flow bubble it created, Greece ran only small current account deficits (the broad definition of the trade balance, including services and factor income): (All data from Eurostat).
I think there is almost a capital spending bubble in China, fueled again by cheap credit.
More posts by this contributor Signs point to a contraction, but no one's bursting venture capital's bubble.
Footloose capital generates bubbles as it rushes in, some complain, only to generate crises when it later retreats home.
One danger is that incoming capital inflates bubbles...Investment in a market can boost its growth outlook, making additional investments more attractive and prompting an upward spiral in capital flows.
Drawing mainly on the British Museums's unparalleled and often overlooked collection of satirical prints by such artists as Gillray and the Cruikshanks, Gatrell finds the capital city bubbling over with a particular kind of pointed fun.
But until they prove their case, central banks will be reluctant to commit to their policy.The market monetarists do not fret about the side effects of the activism they seek, which can misdirect capital, inflate bubbles and seduce people into over-borrowing.
Yet large, temporary inflows of money have been known to pave the way for big economic trouble.In this section Less cash, more impact Voting with the wallet Poor host Into the ring In search of a villain Index fingered Europe's monetary opposition Tide barriers ReprintsOne danger is that incoming capital inflates bubbles.
Having experienced the current crisis, emerging nations may redouble their determination to export capital and another bubble could be inflated.
Conservatives condemned the change as an affront to those who lived outside the capital's liberal bubble.
Paradoxically, it imposed pro-cyclical mark-to- market limits on regulatory capital as the bubble built and then deadly capital dilution after it popped.
