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Financial Stability Paper No 12: The Future of International Capital Flows


  • Speller, William

    (Bank of England)

  • Thwaites, Gregory

    (Bank of England)

  • Wright, Michelle

    (Bank of England)


The experience of the past decade has demonstrated the challenges that international capital flows can pose for financial stability. The build-up of global imbalances (large net capital flows) was one of the preconditions for the recent financial crisis. Increased interconnectedness between countries’ financial sectors (large gross capital flows) created channels through which the initial shock could spread around the world. In these respects, the scale and volatility of international capital flows were crucial determinants of the depth and breadth of the crisis which followed Lehman Brothers’ demise.

Suggested Citation

  • Speller, William & Thwaites, Gregory & Wright, Michelle, 2011. "Financial Stability Paper No 12: The Future of International Capital Flows," Bank of England Financial Stability Papers 12, Bank of England.
  • Handle: RePEc:boe:finsta:0012 Note:

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    References listed on IDEAS

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    Cited by:

    1. repec:wsi:ccexxx:v:05:y:2014:i:01:n:s2010007814400053 is not listed on IDEAS
    2. Tarafás, Imre, 2016. "Kinyílnak-e az őszirózsák?. Kitekintés a válság utáni monetáris politikára
      [A glance at post-crisis monetary policy]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 548-563.
    3. Alex Bowen & Emanuele Campiglio & Massimo Tavoni, 2014. "A Macroeconomic Perspective On Climate Change Mitigation: Meeting The Financing Challenge," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-35.

    More about this item


    International; capital; flows;

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets


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