WP/06/189, August 2006). IX. WHY MONEY FLOWS FROM NORTH TO SOUTH *Moral Hazard: Obstfeld and Rogoff: pp. 407- 419. Externalities to Human Capital: Robert E. Lucas, 1988, “Why Doesn’t Capital Flow from Rich to Poor Countries,” American Economic Review, May 1990, pp. 92-96. Alfaro, Laura, Sebnem Kalemli-Ozcan, V