During bouts of risk aversion, the overriding concern becomes security rather than yield, and investors are prepared to pay for such security as seen in the recent negative bond yields in Germany and the negative interest rates on bank accounts in Switzerland. As capital has moved to safe havens, a number of emerging market currencies, including those of Mexico and Brazil, have depreciated significantly.
But more capital brings the benefit of a more resilient system, one less prone to crisis and one more able to recover if a crisis does occur. Crises are infrequent, but very expensive.