This time is different. As Reinhart and Rogoff point out, this is the excuse which is always used when there is a major shock to the status quo. However, a careful reading of Reinhart and Rogoff shows that while the general themes often repeat themselves, unfortunately history doesn’t repeat exactly. 5 Things are different enough to matter.
On the “pull” side, in the first few years following the global financial crisis, a combination of rising commodity prices and a stronger economic recovery in emerging economies, relative to their advanced economy counterparts, enhanced the attractiveness of these countries as an investment destination.