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Growth but with fluctuations (systematic connection between increased portfolio flows and the incidence of financial crises).
Growth but with fluctuations (systematic connection between increased portfolio flows and the incidence of financial crises).
- Poverty reduction via growth.
Stimulate too much bank lending, excessive investment and speculative activities.
This could lead to goods price inflation, asset market bubbles and potential vulnerabilities in bank balance sheets.
The vulnerability is not limited to banks: sudden stops or reversals can cause currency crisis, the bursting of asset market bubbles, investment collapse, banking sector and economic difficulties.