1. Correspondingly this affected the basic balance, i.e. the current balance plus the balance of long-term capital flow. 2. Gordon talked about multinationals, international finance, global capital flows. 3. Such critics have argued for the imposition of transaction taxes to choke off short-term capital flows. 4. This is because capital flows tend to respond more rapidly to changes in relative interest rates than trade flows tend to respond to changes in relative prices. 5. Capital flows are also influenced by uncertainty, and the influence of different monetary and exchange rate policies. 6. Generally, economic factors such as unemployment rates, trade and capital flows, seem to be the main determinants of labour mobility. 7. In this scenario, capital flows tend towards areas with high technology and high productivity. 8. The traditional Keynesian mechanism can be extended to an open economy to take into account international capital flows and movements in the exchange rate. 9. Altogether the Japanese foreign exchange laws affect billions of dollars of capital flows in and out of the country every year. |