<p>Largely depends on what you mean by that. Net inflows and outflows need to be 0 due to the in and out needed to go and come from somewhere. So if that's what you are asking, they net out. If you are saying for an individual economy, in general, a large sum of inflows &quot;heats up&quot; an economy driving employment, growth, and inflation. The inverse is true for large outflows. The IMF has an article from 1999 that goes into specifics of inflows and outflows. <a href="https://www.imf.org/external/pubs/ft/fandd/1999/09/lopez.htm" rel="nofollow noreferrer">https://www.imf.org/external/pubs/ft/fandd/1999/09/lopez.htm</a></p>

CC BY-SA 4.0
2024-04-19T20:01:16.803Z
2024-04-19T20:01:16.803Z
David deVyver
<p>What happens to capital inflows and outflows in the long run?</p>

<macroeconomics><long-run><long-run-macroeconomics>
Capital Inflows and Outflows in the Long Run
Anonymous
# Capital Inflows and Outflows in the Long Run

(Asked by: username_0 on 2024-04-15)

What happens to capital inflows and outflows in the long run?

**Tags:** macroeconomics, long-run, long-run-macroeconomics


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## 1 answers

### Answer by username_1 on 2024-04-19. Score: 0

Largely depends on what you mean by that. Net inflows and outflows need to be 0 due to the in and out needed to go and come from somewhere. So if that's what you are asking, they net out. If you are saying for an individual economy, in general, a large sum of inflows "heats up" an economy driving employment, growth, and inflation. The inverse is true for large outflows. The IMF has an article from 1999 that goes into specifics of inflows and outflows. <https://www.imf.org/external/pubs/ft/fandd/1999/09/lopez.htm>


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