The 30 mainly consists of four components capital spending by firms, net exports (exports less imports), residential construction, and government purchases.

The portion of capital inflows that is not re exported represents net capital inflows.

Net capital imports exceeded 800 billion in 2008 alone.

Net government spending also helped to reduce overall inequality over those years.

Net private capital flows, particularly to developing economies, have become more volatile.

Government spending remains large enough to guarantee reasonable public services and a social safety net.

As a result, businesses are not likely to increase capital spending.

The net cash flow to total invested capital is the generally accepted choice.

However, these have been partially offset by net outflows of other kinds of capital.

External financing is the main source of capital spending in the health sector.

Because investment is so low, net capital exports from Germany are nearly 4 of GDP.

But we all know the outcome while international capital flows soared, the large net flow of capital from rich to poor countries simply never materialized.

Meanwhile, higher public spending on capital investment and other special procurements will boost domestic demand.

But whether renminbi appreciation will work depends on reducing China s net capital inflows and current account surplus.

Capital spending and exports, which together account for about 24 of GDP, hold the key to this shift. At just over 10 of GDP, the share of capital spending is well below the peak of nearly 13 in 2000.

But meeting the challenge will require vigorous growth from America s other 30 especially private capital spending.

In short, Japan s national savings still exceed its domestic investment, allowing Japan to be a net capital exporter.

Finally, public purchases of domestic assets to stabilize asset prices and net capital flows will become increasingly common.

The view that extra government spending crowds out an equal amount of private spending, so that its net stimulus effect is zero, would be true only if the economy were at full employment.

But even though net international capital flows are going the wrong way, there are still substantial gross capital flows outward from the world economy s core to its periphery.

Firms and consumers reacted to this year s shocks by temporarily slowing consumption, capital spending, and job creation.

The propaganda was successful. Even in 2008, the US was able to attract net capital inflows of 808 billion.

Increased emphasis on household lending should also create a better balance in the economy between capital spending and consumer spending than was possible during the expansion of 2002 2004.

In fact, their new found resilience to capital market shocks is due in no small part to their becoming net lenders to the rest of the world, after years as net borrowers.

The extremely progressive nature of net government expenditures comes about equally from government transfers and public spending very little is contributed by taxes.

Credit that mainly to the other 30 , especially to strong exports and a rebound in business capital spending.

Second, in 2001, weak capital spending in the corporate sector (accounting for 10 of GDP) underpinned the contraction.

Yes, China needs to strengthen its social safety net and to deepen domestic capital markets before consumption can take off.

A factor worthy of note is that developing economies in the ESCAP region have become net exporters of capital as persistent current account surpluses in some countries combined with a sharp increase in net private capital flows have been reflected primarily in the substantial accumulation of official reserves.

Furthermore, attracting more direct investment is crucial, given that capital inflows, while recovering, remain 30 below their pre crisis level with outflows exceeding inflows, Italy has become a net capital exporter.

The airport project and road development together will account for 82.6 per cent of total capital spending in 2004.

And if Japan s domestic net saving surplus vanishes, the current 175 billion of capital outflow would no longer be available to other countries, while Japan might itself become a net drain on global savings.

The international balance of payments remains in surplus, and there is still a net capital inflow despite the global credit crunch.

The unprecedented increase in developing countries foreign exchange reserves is due both to their current account surpluses and large net capital inflows.

The current account deficit is equal to the trade deficit plus the cost of servicing the net international asset position the net rent, interest, and dividends owed to foreigners who have invested their capital in the US.

And, when the economy has flexible exchange rates, if government spending raises interest rates, the currency will strengthen, leading to a decrease in investment and net exports.

In addition, net foreign capital inflows are likely to dwindle for several quarters at least, affecting domestic monetary conditions while aggregate demand is weak.

Flows to both North Africa and sub Saharan Africa have been erratic but, in the past two years, North African countries seem to have experienced net capital outflows, while net flows to sub Saharan African countries have remained positive.

By next year, China s outward investment is likely to reach over 100 billion annually bringing it close to parity with inflows. It will not be long before China undergoes an historic shift from net merchandise exporter to net capital exporter.

Despite its withdrawal from financing the US government, China remains the world s largest net capital exporter, a position that it has held since 2006.In2007 and 2008, China exported on average about 400 billion of capital annually.

These risks are already exacerbating the economic slowdown equity markets are falling everywhere, leading to negative wealth effects on consumption and capital spending.

Of the four growth components that fall into this category, two have the greatest potential to make a difference capital spending and exports.

Indeed, the government has emphasized that Brazil will be even more insulated as efforts to cut spending reduce dependence on external capital flows.

With a fast rising RMB, net capital outflows will increase, which is what Japan experienced after the Plaza Accord of 1985 pushed the yen upward.

Indeed, because capital inflows often cause the domestic exchange rate to appreciate, they encourage further spending on foreign goods as domestic producers become uncompetitive.