Title: Do differences in financial development explain the global pattern of current account imbalances?
Description: "This paper addresses the popular view that differences in financial development explain the pattern of global current account imbalances.  One strain of thinking explains the net flow of capital from developing to industrial economies on the basis of the industrial economies' more advanced financial systems and correspondingly more attractive assets.  A related view addresses why the United States has attracted the lion's share of capital flows from developing to industrial economies; it stresses the exceptional depth, breadth, and safety of U.S.  financial markets"--Federal Reserve Board web site.