Sovereign Wealth Funds: What Have We Learned?

Abstract:

The build-up of current account surpluses in emerging market economies, and the resulting rise in the wealth holdings of the governments of these countries, has led to a rapid increase in the size of sovereign wealth funds. These funds invest internationally, and create large pools of internationally mobile capital, which are managed by governments, instead of by the private sector. It is widely believed that important policy issues arise as a result of this fact. The book emerged from a wish to understand these policy issues. The result is a book which provokes a number of thoughts. My aim in this short concluding chapter is to draw these thoughts together into just two strands.