BIS central bankers’ speeches  3  23. Not only are capital flows too much or too little, they are also volatile. They respond to both push and pull factors. The important push factors are the monetary stance of advanced economy central banks which determines the liquidity in the global system and the need of investors for asset diversification.
This co-movement partly reflects the large changes in global commodity prices over recent years. When global oil prices went up, they boosted the CPI in almost all countries, and when they went down during the financial crisis, they led to CPI inflation falling almost everywhere. Movements in food prices had a similar global effect.