International capital inflows are related to external factors as well as to a country’s internal conditions. While monetary policies in developed economies affect investor decisions, a country’s domestic economic conditions also play a role in shaping investment flows. Capital inflows to some Asian and Latin American emerging markets started to slow by January 2013. This trend was intensified after Chairman Bernanke’s May 22 speech. However, capital retrenchment was not uniform and appears to have been related to a country’s internal and external imbalances.