According to some analysts,deregulation and reduced controls on cross-border capital flows are making individual nations more vulnerable to speculative capital flows.

Question

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Deregulation and reduced controls on cross-border capital flows allow for a freer movement of capital, which can lead to speculative capital flows that can destabilize individual economies. This has been seen in various financial crises, such as the Asian financial crisis of 1997 and the global financial crisis of 2008, where speculative capital flows contributed to the crises.

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