EM “Hot Money” Doesn’t Come Home; It Just Dies In The Global Dollar Short

That reverse situation is the dollar short growing more problematic, as in 2013, 2011 or 2008, thus the balloon shrinking. What is certainly appearing as an “outflow” to the emerging market filled by the dollar movements in expansion is not an inflow to domestic markets or anywhere else, but rather a simple shrinkage in total “dollar” participation broadly. It is the essence of cumulative balance sheet “flexing” in and out.
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