Global Imbalances Shifted by Two-Way Capital Flows, Impacting Economies Worldwide
The article "Two‐Way Capital Flows and Global Imbalances" explores how capital flows between countries can impact global imbalances. The researchers from various universities studied this by analyzing data and economic models. They found that two-way capital flows, where money moves in and out of a country, can contribute to imbalances in the global economy. This means that the movement of money between countries can affect the overall stability and health of the world economy.