Broner, Fernando; Didier, Tatiana; Erce, Aitor; … - Department of Economics and Business, Universitat … - 2010
This paper analyzes the behavior of international capital flows by foreign and domestic agents, dubbed gross capital … flows, over the business cycle and during financial crises. We show that gross capital flows are very large and volatile …, especially relative to net capital flows. When foreigners invest in a country, domestic agents invest abroad, and vice versa …