One of the main sources of concern for emerging markets is not only the possibility of large capital outflows, but the "dynamics and volatility" of those flows, a Bank of Mexico deputy governor has said.

Speaking at a research conference hosted by the central bank, November 23–24, Manuel Ramos-Francia said the "correct approach" to understanding this was an "agency problem" among the owners of capital and its managers.

This is illustrated by Morris and Shin, he said, who presented a model on the