But some of it may reflect non-speculative transactions, such as foreign borrowing by Chinese firms.
The RBI worries about the foreign borrowing of Indian firms even as it makes it impossible for them to find necessary finance from domestic providers.
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He likens America's foreign borrowing to the sale of indulgences by medieval Catholic priests for instance, and wonders what will be the financial equivalent of the Protestant Reformation.
High reserve requirements, especially against foreign borrowing, are one option.
Unlike the tigers, China relies very little on foreign borrowing.
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The problem is not so much the budget deficit (though Greece was certainly profligate) as the net foreign borrowing by all actors, public and private (say to finance a trade deficit).
As for the corporate sector, the Central Bank of Russia has said that the deleveraging of 2009-10 has made Russia companies more resilient to external shocks that trigger higher foreign borrowing costs.
The most fundamental is that within a few years existing and new issue government debt may absorb all private savings (corporate and household) in Japan, making foreign borrowing inevitable and creating a terrifying scenario of higher yields demanded by foreigners raising MOF interest costs while inflicting portfolio losses on JGB holders, and putting fiscal balance further (infinitely?) beyond reach, with (by then) predictably horrendous consequences.
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But eastern Europe and Russia have been hammered because local banks went on a foreign-borrowing binge, foreign banks piled into their markets (and piled out again) and because some countries lacked insurance policies against tough times.
Not only does a fixed rate prevent a central bank from using interest rates to prevent an economy from overheating (because higher interest rates would push up the value of the currency), but it also encourages too much foreign-currency borrowing when foreign interest rates are lower than local ones.
"Over the past five years, foreign currency borrowing by firms in emerging markets has risen by about 50 per cent, " said Ms Lagarde.
It is, as usual, in deficit, necessitating foreign grants, borrowing and the sale of state assets.
Foreign-currency borrowing, 95% of it in Swiss francs, accounts for over two-thirds of total lending.
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The flood of foreign-currency borrowing destabilised their economies and left them vulnerable when Western banks reduced lending.
For this purpose, the Bush team should create a new interagency capital markets working group, perhaps calling it the Committee on Foreign Financing and Borrowing (COFFAB).
According to OFII, the foreign investment estimates include equity capital, reinvested earnings and inter-company debt (U.S. subsidiaries borrowing from foreign parent companies).
Most of this recovery was to be financed by borrowing from foreign banks, but no matter.
They were a way to keep down inflation, but they also encouraged excessive borrowing in foreign currencies, creating strains that eventually broke the currency peg.
Financial globalisation spread capital more widely, markets evolved, businesses were able to finance new ventures and ordinary people had unprecedented access to borrowing and foreign exchange.
The study was done from a U.S. dollar view, but the council said its findings are applicable to other foreign investments where higher borrowing costs make traditional currency hedging expensive.
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In effect, countries will be borrowing in a foreign currency without control of the printing presses.
The thesis of this book is that we can bring about fundamental change by borrowing ideas from foreign models of health care.
Borrowing in a foreign currency is a problem if debt costs rise because the currency used to pay that debt is weakening.
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Rep. Walter Jones of North Carolina -- a Republican opponent of the war -- pointed out the United States "is borrowing money from foreign governments to pay our bills" while oil and gas prices have more than doubled.
For most countries, the interest cost of domestic borrowing is greater than the return on foreign reserves, because reserve currencies tend to pay lower interest rates.
On the contrary, Japanese households are turning their assets back into yen, having been badly burned in their ventures into high-yielding (and highly risky) foreign bonds, while the banks have ended the trade of borrowing yen to buy dollars.
The Polish currency is likely to rise further due to Poland's relatively sound economy, the inflow of foreign funds, and the market continuing to expect more cuts to borrowing costs than the central bank is ready to deliver, said Nomura economist Peter Attard Montalto.
They fret over trade deficits but fail to mention the flip side of capital surpluses--foreign money pouring into the U.S., keeping stocks high and borrowing rates low.
To quickly explain why this view is certainly not ours, consider that our position is that the abnormally high consumption of US households during the 2000s was matched by an abnormally large trade deficit in goods and that feedbacks among, borrowing, consumption, the dollar, US long term rates, foreign reserve accumulation and other factors worked to keep these two effects moving in tandem.
The cost of borrowing began to creep up again, a big bank that had bet on cheaper money failed, foreign capital took flight and Turkey found itself in a vicious circle of wobbling banks and spiralling interest rates.
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