NBER Working Paper: The Natural Level of Capital Flows
Authors: John D. Burger, Francis E. Warnock, Veronica Cacdac Warnock Date: August 2019 Abstract: We put forward the notion that capital flows—specifically, gross portfolio flows—fluctuate around some natural level. Our particular measure of the natural level of capital flows, denoted by KF*, is a theory-based time-varying supply-side factor, much like potential GDP is a theory[…]