Asia ran huge current account deficits before the 1997-98 crisis, much of it financed by foreign direct investment rather than pure debt flows, yet still suffered crisis—showing that even non-debt inflows correlate with the credit availability that precedes crises.

factualpending

Speaker

Carmen Reinhart

Evidence Quote

it had huge current account deficits a lot of that was foreign direct investment

Source

Carmen Reinhart on Financial Crises 11/23/2009EconTalk
Created: 6/15/2026, 9:20:19 AM

My Notes

Loading notes...