Central Bank of Chile paper identifies causes of sudden capital flows


A working paper published by the Central Bank of Chile in August studies the factors behind sharp changes in capital flows, finding that debt is the most important determinant.

The authors, Kristin Forbes and Francis Warnock, analyse data on gross movements of capital in and out of 50 emerging and developed countries over the period 1980–2009. The paper finds that 80% of inward flows and 70% of outward are primarily caused by changes in debt flows. These debt dynamics, the authors say, are

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: