The article discusses how short-term capital flows can impact the growth of both developed and emerging markets. It suggests that large and volatile short-term flows may hinder growth in emerging markets, while not affecting rich countries. The study also explores the use of capital controls to manage capital inflows and exchange rate movements in emerging markets. The findings indicate that opening up capital accounts in emerging markets may not always lead to prosperity. Additionally, the article examines the impact of the Euro on foreign direct investment, showing that the Euro has increased inward FDI within the Euro-area and to/from non-member countries.