According to some analysts, deregulation and reduced controls on cross-border capital flows are

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According to some analysts, deregulation and reduced controls on cross-border capital flows are making individual nations more vulnerable to speculative capital flows. This is seen as having a destabilizing effect on national economies. The capital that moves internationally may be pursuing temporary gains, and it shifts in and out of countries as quickly as conditions change. A lack of information about the fundamental quality of foreign investments is often seen as encouraging speculative flows in the global capital market. Faced with a lack of quality information, investors may react to dramatic news events in foreign nations and pull their money out too quickly. With better information about foreign assets, the global capital market would work more efficiently and be less subject to short-term speculative capital flows.

According to Some Analysts, Deregulation and Reduced Controls on Cross-Border