Capital flight

Capital flight is a rapid outflow of financial assets from a country, often driven by political or economic risk, currency fears, or expected losses.

Capital controls: Government restrictions on cross-border movement of money and financial assets. They are imposed to slow the transfers that accelerate during capital flight.
Greek financial crisis: A prolonged sovereign-debt and banking crisis in Greece that intensified after 2009. Depositors and investors shifted funds abroad amid fears of default and euro exit.
Currency depreciation: A decline in a currency's value relative to other currencies under a floating exchange-rate system. Asset sales and demand for foreign currency can intensify downward exchange-rate pressure.
Capital inflow: The entry of financial assets into a country from foreign investors or lenders. It is the directional opposite of capital flight and can offset its financing effects.
Currency crisis: A sharp loss of confidence in a currency that causes devaluation or threatens its stability. Expected devaluation can prompt investors to move assets abroad before their value falls.
Argentina's 2001 crisis: Argentina's severe economic and political crisis, culminating in default and the collapse of its currency regime in 2001. Restrictions on withdrawals followed extensive deposit outflows and a collapse in confidence.
Investment: The use of resources to create or acquire assets expected to generate future benefits. Funds held abroad are unavailable for domestic investment unless they later return.
Foreign direct investment: Cross-border investment that gives an investor lasting influence over a foreign enterprise. Long-term productive ownership differs from rapid transfers intended to escape risk.
Balance of payments: An accounting record of a country's economic transactions with the rest of the world. Cross-border asset transfers appear in the financial account and can strain external financing.
Russian financial crisis: The 1998 Russian crisis marked by sovereign default, ruble devaluation, and financial-market collapse. Investors withdrew funds as fiscal weakness and exchange-rate pressures became acute.

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