As exchange rate expectations changed, capital flows responded strongly. (a)  Relative size  These recipients of the capital inflows were small relative to the size of the flows. While net capital inflows into the United States were over $ 180 billion,15 this figure was only a little over twice the size of the flows going into Indonesia, Korea, Malaysia, the Philippines and Thailand.
Thus, a key lesson that Germany has learned from the past decade is that ambitious structural reforms to tackle entrenched domestic problems may be costly at first, but ultimately they pay off. Although the German economy has lost momentum over the past few months, we expect GDP growth to pick up soon.