Capital Flows and Leverage
Sebnem Kalemli-Ozcan and Jun Hee Kwak , ( 12 )
Annual Review of Economics
833-846
August
2020
Abstract

This article surveys the literature on capital flows and leverage. We summarize results from the existing papers and document new facts. The empirical literature takes both a macro and a micro approach. The macro approach focuses on aggregate data both over time and in the cross-section of countries, and it documents a positive correlation between total capital flows, build-ups in terms of external and domestic debt to GDP ratio, and financial crises.

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