Few days ago I heard someone say: “It is the stable currency that everybody wants at first, and then they want as much as possible of the same currency”. That is a true picture of Serbia today.
This suggests that private capital flows are now playing a more important role in determining market dynamics. I might even say that we should be proud of ourselves in allowing the international financial markets to develop into such a resilient system. If this is so, why are we saying that global imbalances risk the stability of the international financial system and the global economy?