Broner, Fernando; Didier, Tatiana; Erce, Aitor; … - Economics Research, World Bank Group - 2011
This paper analyzes the joint behavior of international capital flows by foreign and domestic agents -- gross capital … flows -- over the business cycle and during financial crises. The authors show that gross capital flows are very large and … volatile, especially relative to net capital flows. When foreigners invest in a country, domestic agents tend to invest abroad …