Capital flow waves to and from Switzerland before and after the financial crisis

This paper examines the presumption that Switzerland was faced with higher capital inflows during and after the financial crisis. In order to do this, it identifies waves of capital flows to and from Switzerland using a simple statistical method. The analysis finds that no surges of gross capital inflows to Switzerland have occurred since the financial crisis. Instead, a "home-bias" behavior can be observed for all investors. In particular, gross capital flows to and from Switzerland have become exceptionally muted and less volatile. However, net capital flows to and from Switzerland have shown significantly higher volatility since the financial crisis.