Financial market conditions Since 2010 the world economy has faced unusually benign international financial conditions stemming from the expansionary monetary stances of advanced countries, most notably the United States. Record low interest rates coupled with relatively more attractive prospects in emerging markets resulted in a financial bonanza for these economies.
The search for yield fueled significant capital flows into emerging economies and appreciation of financial assets, including currencies and bonds. 3 Governments and corporations profited, issuing debt abroad under attractive conditions. Some countries may have experienced increased productivity derived from capital flows, especially when these took the form of foreign direct investment.