Capital Flow

Definition

Capital flow refers to the movement of money or financial assets into and out of a country. It includes both international capital flows and domestic capital flows within a country.

Related terms

Capital Inflow: Capital inflow refers to the movement of money or financial assets into a country from foreign sources.

Capital Outflow: Capital outflow refers to the movement of money or financial assets out of a country to foreign destinations.

Financial Account Balance: The financial account balance measures changes in ownership of foreign assets by residents and domestic assets by non-residents. It captures capital flows related to investments, loans, and other financial transactions.