BOE’s Haldane Says Global Capital Flows Pose Stability Risk

Bank of England official Andrew Haldane said financial stability may be threatened by capital flows from developed countries that are too quick and substantial for emerging nations to absorb.

“The global flow of funds could become an increasingly powerful generator of global financial instabilities,” Haldane, the bank’s executive director for financial stability, said in a speech delivered today in Bretton Woods, New Hampshire. “Pressures could mount on policy makers to protect against the rising tide of capital flow-induced instability, including through capital restrictions and macro-prudential measures.”