External balance sheets of emerging economies: low-yielding assets, high-yielding liabilities

The new millennium has witnessed a rapid expansion of external balance sheets and significant changes in the capital, currency sectoral compositions foreign assets liabilities emerging economies. These have created channels transmission global financial shocks amplified susceptibility value their outstanding stocks gross to conditions, leading sizeable wealth transfers between advanced They also resulted income view negative yield differentials liabilities. Altogether, such economies are estimated reached 2.3 per cent combined GDP G20 annum during 2000–2016.