Also important are changes in the terms of trade and large capital inflows.

This year foreign capital inflow is likely to total $220 billion.

"And it looks like the capital inflows will continue at least for a while."

But all too often, these capital inflows are followed by another crisis.

"It is quite likely there were no net private capital inflows."

Capital inflows from China have also rapidly increased since 2008.

During the previous five-year period, developing countries had a total capital inflow of $140 billion.

Thus, we should welcome a reduced trade deficit and a lower capital inflow as a sign of better times ahead.

We are interested in capital inflows, new technologies and innovative ideas.

"We're depending on foreign capital inflows of about $10 billion a year to finance our trade balance," he said.

As we noted earlier, these capital inflows have financed the current account deficits.

Often these capital inflows are caused by foreign direct investment or to finance a country's debt.

Anytime that capital inflow slows down it has an impact on interest rates.

But the heavy capital inflow was not an unmixed blessing.

Thus far this year net capital inflow into the United States has been zero.

That capital inflow, in turn, produces the trade deficit.

Through 1985 the growth of recorded net private capital inflows kept pace with the growing current account deficit.

There are some foreign capital inflows, but no robust foreign investment.

The capital inflow will likely reverse as calm returns.

Cutting off that foreign capital inflow now would drive United States interest rates through the roof.

Ms. Hay also believes that move will stimulate foreign capital inflows and speed growth.

But it still has, willy-nilly, to be financed by attracting capital inflows.

From the beginning of the reforms legalizing foreign investment, capital inflows expanded every year until 1999.

But, to achieve capital inflow, the debtors will have to make a determined effort to reduce inflation.

To prevent this from depressing the exchange rate, £20bn of extra capital inflow has to be forthcoming.