capital flows

Capital flows refer to the movement of money for investment, trade, or financial purposes across countries. These flows include investments in stocks, bonds, real estate, or business ventures, and can be driven by economic opportunities, interest rates, or geopolitical factors. Positive flows (inflows) bring money into a country, potentially boosting growth, while negative flows (outflows) mean money is leaving, which can impact the economy. Understanding capital flows helps explain shifts in exchange rates, economic stability, and global financial dynamics.