Moreover, even if larger net inflows of private capital can be attracted to SSA countries to finance current account deficits, private capital flows are likely to be volatile because of the fragility and turbulence on global financial markets, which itself will be a source of instability for the macroeconomy. 3.
Asset values also have moved up most quickly in these countries. Perhaps this is not altogether surprising given that no countries in the region have had seriously impaired banking systems, but most have had very expansionary monetary policy.