Broner, Fernando A; Didier, Tatiana; Erce, Aitor; … - C.E.P.R. Discussion Papers - 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. 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 tend to invest abroad, and vice …