financial crises. We show that gross capital flows by foreigners and domestic agents are very large and volatile, especially … domestic agents tend to invest more abroad. During crises, there is retrenchment, i.e. a reduction in capital inflows by … foreigners and an increase in capital inflows by domestic agents. This is especially true during severe crises and during …

flows, over the business cycle and during financial crises. We show that gross capital flows are very large and volatile … more abroad. During crises, total gross flows collapse and there is a retrenchment in both inflows by foreigners and … outflows by domestic agents. These patterns hold for different types of capital flows and crises. This evidence sheds light on …

returns and crises and adjust their investments substantially, e.g., generating large reallocations during the global …

business cycle and during financial crises. We show that gross capital flows by foreigners and domestic agents are very large … capital and domestic agents tend to invest more abroad. During crises, especially during severe ones, there is retrenchment, i …

flows, over the business cycle and during financial crises. We show that gross capital flows are very large and volatile … more abroad. During crises, total gross flows collapse and there is a retrenchment in both inflows by foreigners and … outflows by domestic agents. These patterns hold for different types of capital flows and crises. This evidence sheds light on …