Professor Stephany Griffith-Jones – ODI Research Associate and Financial Markets Director at the Initiative for Policy Dialogue, Colombia University

We asked Stephany about the prospects for cross-border capital flows to the poorest and most vulnerable countries. Stephany argues that despite increases in cross-border capital flows to developing countries (including FDI and more recently portfolio flows) there are signs for concern over US monetary policy. Though US tapering has not yet hit LICs (apart from through interest rates) it will be likely to do so through a slowdown in trade with emerging economies and contagion.