Did this create a problem in developed markets

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The emerging markets elected to accumulate vast sums of foreign assets in the 2000s.

(a) What may have caused this decision?

(b) How did (real) interest rates evolve over this period, and how can one explain them using a simple demand-supply model? [Hint: Saving is supply of capital, investment is demand for capital].

Reference no: EM131109954

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