Disorders in international capital flows have very negative impacts on many countries

The main disorder in international capital flows is that capital does not flow to countries with lower per capita capital (per capita income). Two important examples of the negative impacts generated by this " disorder " are: The fact that the excess savings of Germany and the Netherlands are not being lent to other euro-zone countries, especially the peripheral countries, but to the rest of the world, especially the United States, which structurally weakens the peripheral euro-zone countries' economies; The fact that emerging countries with a low savings rate, and therefore a structural external deficit (Argentina, Brazil, Turkey, India and South Africa in particular) cannot receive stable financing from OECD countries or countries with a savings surplus, which means that emerging countries with a low savings rate suffer a series of balance of payments crises and, consequently, recessions.