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 … versa. Gross capital flows are also pro-cyclical, with foreigners investing more in the country and domestic agents …