capital flows

Cross-border investment transfers

Capital flows are movements of money across borders for investment, trade, or speculation.

When investors buy foreign stocks, corporations build factories abroad, or banks lend internationally, capital flows between countries.

Economists track these movements as indicators of economic health and investor confidence: Capital flows into emerging markets surged after interest rates fell.

Large or sudden flows can destabilize currencies and financial systems.

Related

repatriation · investment · economic growth · contagion · sudden stop · sovereign debt · swaps · balance of payments · hedge funds · safe haven · remittances · stocks · inflation rates · private equity · risk appetite · liquidity · exchange rates · derivatives

Opposites
direction of movement

capital flowscapital flight

Rapid outflow of investments

disinvestment

type of cross-border economic activity

capital flowscommodity trade

Exchange of raw materials

mobility/movement

capital flowsfrozen assets

Legally inaccessible wealth

Family

capital, flows

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Used worldwide · Timeless · Abstract · Rated G