The second risk, which frequently took the centre stage in debates on euro accession, is that of large and potentially disruptive capital inflows. The starting point of the argument here is that the catching-up process of New Member States is about to continue for a long period even after they introduce the common currency.
Moreover, capital flows now take many more forms than in the past: In the nineteenth century, international portfolio investments were concentrated in the finance of infrastructure projects (such as the American railroads) and in the purchase of government debt. Today, international investors hold an array of debt instruments, equities, and derivatives, including claims on a broad range of sectors.