Massive Emerging Markets Fund Flows Get Burned [View article]
I'd agree with Kenji Kaya that private portfolio capital flow volatility do not indicate general reversal. However, I recently did an analysis of the Asian crisis 1997-98 for school (I'm a senior undergrad). One of the things that most surprised me was the extent that problems in one country (Thailand) sparked an general rout of capital flows for the entire region - in which capital outflows caused more and more capital outflows and this led to a collapse of economic fundamentals in the "real" economies. Of course, there was a bit more to it than that, but capital flow reversal was the gasoline on the fire.
Massive Emerging Markets Fund Flows Get Burned [View article]