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Flight of Capital

Flight of Capital Definition

Flight of Capital describes the process when money rapidly flows out from one investment to another in order to achieve greater stability or higher returns. Sometimes money is moved from investments in one country to another to avoid country-specific risks due to economic or political events. Investors may lose confidence in the economic strength of a country, e.g if inflation is high, taxes on capital are increased or political turmoil occurs and they move their money from that country.





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