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Essay text:
We may face yet another crisis of the same or a larger magnitude momentarily.
What are the lessons that we can derive from the last crisis to avoid the next?
The first lesson, it would seem, is that short term and long term capital flows are two disparate phenomena with very little in common. The former is speculative and technical in nature and has very little to do with fundamental realities. The latter is investment oriented and committed to the increasing of the welfare and wealth of its new domicile. It is, therefore, wrong to talk about "global capital flows". There are investments (including even long term portfolio investments and venture capital) ? and there is speculative, "hot" money...
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