capital mobility

Capital mobility refers to the ease with which financial resources, like investments and funds, can move across borders between countries. When capital is highly mobile, investors and companies can quickly shift money to different nations in response to interest rates, market conditions, or economic policies. This movement influences currency values, interest rates, and economic stability. High capital mobility enables countries to attract foreign investments but can also make economies more vulnerable to external shocks. In essence, it reflects how freely financial capital can flow internationally, shaping global economic relationships and policymaking.