A lot of the outflows are deliberate economic policy to the benefit of the countries economy. China has bought ~$6 trillion of US treasuries over the past few decades via it's dollar sterilization policy to hold down it's currency (though this has reversed somewhat over the last year). This has benefited China by making it's exports more competitive, driving growth. Many East Asian countries also accumulated huge US dollar reserves after the 97 Asian financial crisis.
This is a problem, but not for the reasons stated by the article. I understand that this 'glut' of capital from developing countries had a big role to play in causing the 08 financial crisis. Because there aren't as many growth opportunities in developed countries, a lot of the money went into asset bubbles, like the US sub prime bubble that precipitated the crash.
This is a problem, but not for the reasons stated by the article. I understand that this 'glut' of capital from developing countries had a big role to play in causing the 08 financial crisis. Because there aren't as many growth opportunities in developed countries, a lot of the money went into asset bubbles, like the US sub prime bubble that precipitated the crash.