In the decade preceding the financial crisis, as growing emerging market economies began to realize current account surpluses due to very high rates of saving, they channeled investment from _____ to ______.

Question

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In the decade before the financial crisis, emerging market economies, experiencing high rates of saving and current account surpluses, invested their excess savings in developed market economies. This was partly due to the search for safe investment opportunities and the relatively low interest rates in their own countries.

In the Decade Preceding the Financial Crisis, as Growing Emerging