One observer notes that this shift towards the issuance of local currency debt “has been facilitated by increasing demand from foreign investors for higher-yielding local currency assets” (LeijonhufVud, 2007: 1839). This increase is also likely to have been supported by attempts in emerging market economies to strengthen their stock markets by opening them to foreign investors. Indeed, a fourth source of possible adverse macroeconomic and distributional effects accompanying financial integration is the potential of capital surges to produce asset price or real estate bubbles.