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To ease the pressure, the powerful industrialists' association in São Paulo wants to see some form of tax or restriction on short-term financial inflows.
And no matter how much China publicises its record in Africa, the greatest contributor of financial inflows to the continent is the African diaspora.
That was what the earlier debate over "currency wars" – when emerging markets complained about being inundated by financial inflows from the US – was all about.
The sharp slowdown in export growth in May "in part reflects the impact of a clampdown by the government on firms dressing up financial inflows as exports," Mr. Kuijs said in an e-mail on Saturday.
ButThey did avoid, or at least limited, the costs of extreme liberalization, of state breakdown, of giving wealth to owners without the interest or ability to develop enterprises and...of covering up for their economies' weaknesses with financial inflows.
Remittances are one of the largest financial inflows to the developing world.
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This financial inflow amounted to 8.7% of the GDP in 2006.
The most popular sectors were industrials and financials, which posted inflows equal to 4.7% of assets and 2.8% of assets, respectively.
Most emerging currencies have gained this year because of huge inflows to financial markets and booming commodity prices.
José Darío Uribe, governor of the central bank, puts a lot of weight on using prudential rules to stop inflows causing financial instability.
The company attributed its expense ratio decline to a combination of operating efficiency, a record level of net cash inflows, strong financial markets in 1997 and its corporate structure, under which the Vanguard Group is jointly owned by the Vanguard funds and provides services to the funds at cost.
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