Title of article :
Gross capitalflows:Dynamicsandcrises
Author/Authors :
Fernando Broner، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2013
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
Journal title :
Journal of Monetary Economics
