By Yu Yongding BEIJING: In theory, the difference between capital inflows and outflows in developing countries should be positive — they should be net capital importers, with the magnitude of the balance equivalent to the current-account deficit. Since the 1997-1998 Asian financial crisis, however, many East Asian countries have been running current-account surpluses — and hence …

By Yu Yongding BEIJING: Even as the debt crises in Europe and the United States loom large and the global economic recovery falters, inflation is making a comeback worldwide. Indeed, emerging-market economies are bracing for a serious bout of it – together with the dire political consequences that it will bring. China’s headline consumer price index …

By Yu Yongding BEIJING: Despite shaky economic fundamentals, US government securities are usually regarded as a safe haven. Whenever a crisis erupts, the value of US Treasury bonds gets a boost. Indeed, US Treasuries were among the few assets that did not decline during the global financial crisis in 2008-2009. But the safe-haven status of US …