So now we have all the benefits of free flows of international capital. These
benefits are mammoth: the ability to borrow abroad kept the Reagan deficits from
crushing US growth like an egg, and the ability to borrow from abroad has
enabled successful emerging market economies to double or triple the speed at
which their productivity and living standards converge to the industrial core. But
the free flow of financial capital is also giving us one major international financial
crisis every two years