The overall problem of the capital flows, both from the point of view of the monetary management of EMEs and reverse capital flows to industrialised countries, is now receiving worldwide attention. The Committee of Global Financial System (CGFS) under the aegis of BIS has also appointed a Working Group to look into these complex issues. BIS Review 86/2007  7  II.
At the same time, however, we cannot deny greater uncertainties and a loss of risk appetite in the near term. Looking at the US financial markets, for example, the stock price has almost recovered the level recorded before the terrorist attacks, but still continues nervous movements. In the meantime, credit spreads have remained widened.