Hot Money Is Creating Havoc in the Global Economy

Hot money refers to funds which flow into a country to take advantage of a favourable interest rate, and therefore obtain higher returns

Hot money was largely responsible for the currency crises in Mexico and Asia during the 1990s

THEREALNEWS Nov 2010 | No capital controls was one of the pillars of neo-liberal economics—meaning, do not control capital in and out of a country; no government regulations; no capital control of any kind. This was supposed to bestow the blessings of freedom and prosperity on the whole world.

Instead, the free flow of capital has led to the unraveling of the global financial situation. So much so that now even the IMF is suggesting capital controls.