Economic theory suggests capital should flow from rich to poor countries, but it is not. In part two of his talk with John Authers, Eswar Prasad, Cornell University economics professor, explains why emerging nations are pumping money into the US.

For more video content from the Financial Times, visit http://www.FT.com/video

Subscribe to the Financial Times on YouTube; http://goo.gl/vUQx5k
Twitter https://twitter.com/ftvideo
Facebook https://www.facebook.com/financialtimes