Emerging markets and capital flows  One of the consequences of the easy monetary policy employed over the past few years has been the surge in capital flows to emerging market economies.
The Institute of International Finance (IIF) records that net private capital inflows to emerging markets increased from just below $ billion in 2002 (1,5 per cent of GDP) to $ billion in 2010 (7 per cent of GDP). The IIF estimates that inflows will rise to $ billion in 2011 and to over $ trillion in 2012.