As a broad generalisation it is usually laid down that capital tends to flow from the advanced and well-endowed countries to the needy ones. This is not a proposition of universal validity. For instance, in certain years there have been net inflows of capital into the U.S.A., the best endowed of all countries. And the distribution of outflowing capital is not always in favour of the most needy; for instance there has been a recent tendency for more American capital to go to the well-endowed countries of Europe than to the less developed countries.
KeywordsMonetary Policy Foreign Investment Money Supply Foreign Capital Economic Dynamic
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