Changes in International Captial Flows and Monetary Dominance: a Study of Small and Large Economies
Thie study attempts to examine changes that have occurred in the extent of internatinal capital flows over the past three decades. In addition, the paper investigates the influence of changes in large economies interest rates on rates in smaller economies. Empirical results of the study show that capital flows have increased over time and that the US has played a dominant role in setting global financial conditions while Germany has emerged as a dominant regional economy.
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