Part 2 of China’s “Hot Money” Problems. Because “hot money” flows quickly and is poorly monitored, there is no well-defined, direct method for estimating the amount of “hot money” flowing into a country during a period of time. In addition, once an estimate is made, the amount of “hot money” may suddenly rise or fall, […]
Part 1 of China’s “Hot Money” Problems. China has experienced a sharp rise in the inflow of so-called “hot money,” foreign capital entering the country supposedly seeking short-term profits, especially in 2008. Chinese estimates of the amount of “hot money” in China vary from $500 billion to $1.75 trillion. The influx of “hot money” is […]