Emerging markets Emerging conundrum

One of the wonders – or «conundrums» – of the modern world is that emerging markets are now net creditors for the first time since the asset class was created two decades ago. This reflects one of the stranger features of the global economy. In essence, poor savers in developing countries are currently funding debtors in richer ones. This stands traditional economics on its head. Capital should flow to where it most scarce and earns a higher marginal return, not to where it is most abundant. Se...