This letter examines the importance of sentiment effects on asset allocation decisions in mainland China. While liquidity matters too, we find that rising stock market sentiment exerted a statistically significant negative effect on Chinese time deposit growth during 2003-2007

Most of the emerging market currency crises are accompanied by sharp reversals or quot;sudden stopsquot; of capital inflows. We investigated whether some types of capital flows are more likely to reverse than others during these crises. Foreign direct investment is usually considered stable...

Using panel estimation for a large sample of industrial and developing countries we find significant negative effects of inflation on economic growth. The magnitude of these effects is, however, much larger for the industrial countries than for the developing countries