This is in part because emerging-market economies have less developed financial systems that may not be able to generate enough financial assets to absorb domestic savings, so capital flows from these countries into others where the financial systems are more advanced. See E. G. Mendoza, V. Quadrini and J.-V. Ríos-Rull, “ Financial Integration, Financial Deepness and Global Imbalances,” Journal of Political Economy 117, no.
3 (June 2009): 371–410. 3 See M. Carney, “Growth in the Age of Deleveraging” (remarks to the Empire Club of Canada and the Canadian  Club of Toronto, Toronto, Ontario, December 12, 2011). 4 Specifically, none of these countries saw a large drop in house prices during the crisis.