Capital flows drive rapid currency appreciation in emerging Asian countries.
The study looked at how different types of money coming into and leaving Asian countries affected the value of their money. They found that when money comes in for investments like buying stocks, the value of the money goes up faster than when money comes in for starting businesses. But overall, all types of money coming in make the money worth more. When money leaves the country, the value of the money goes down more than when money comes in. This means that if too much money comes in for investments, the value of the money could go up too much, especially if it's for buying stocks.