Title of article
Gross capitalflows:Dynamicsandcrises
Author/Authors
Fernando Broner، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2013
Pages
21
From page
113
To page
133
Abstract
This paperanalyzesthebehaviorofinternationalcapitalflowsbyforeignanddomestic
agents,dubbedgrosscapitalflows,overthebusinesscycleandduringfinancialcrises.
We showthatgrosscapitalflowsareverylargeandvolatile,especiallyrelativetonet
capitalflows.Whenforeignersinvestinacountry,domesticagentsinvestabroad,and
vice versa.Grosscapitalflowsarealsopro-cyclical.Duringexpansions,foreignersinvest
more domesticallyanddomesticagentsinvestmoreabroad.Duringcrises,totalgross
flows collapseandthereisaretrenchmentinbothinflowsbyforeignersandoutflowsby
domesticagents.Thesepatternsholdfordifferenttypesofcapitalflowsandcrises.This
evidenceshedslightonthesourcesoffluctuationsdrivingcapitalflowsandhelps
discriminateamongexistingtheories.Ourfindingsseemconsistentwithcrisesaffecting
domesticandforeignagentsasymmetrically,aswouldbethecaseunderthepresenceof
sovereignriskorasymmetricinformation
Keywords
Gross capitalflowsNet capitalflowsDomestic investorsForeign investorsCrises
Journal title
Journal of Monetary Economics
Serial Year
2013
Journal title
Journal of Monetary Economics
Record number
846576
Link To Document