Here the basic assumption is that capital inflows precede and cause growth.

The Eurodollar market was the name given to the market surrounding the dollar accumulation in the banking system outside the United States during the “dollar glut” period of low U.S. interest rates in the 1960s.

a market collapse is nearly always implicit in the structure of the market itself.

this book I will argue that certain types of financial crises—like the crises that have affected many Latin American and Asian countries in recent years—are problems of sovereign balance sheet mismanagement and not economic mismanagement.

The second, less obvious, way is to reduce directly the mismatch between revenues and expenses by lining up debt servicing costs with operating revenues.

It is enough to summarize the key liquidity events that preceded the booms.

corporations; I mean the body of finance theory that applies to the relationship between an economic entity, its capital structure, and market risks.

One way of thinking about this is that the more the expected variation in the net flows (i.e., inflows minus outflows), the more volatile a capital structure is.

When volatility increases, the negative effect on the already low intrinsic value is less than the positive effect on time value. As volatility increases, consequently, equity value increases.