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What happens to capital inflows and outflows in the long run?

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Largely depends on what you mean by that. Net inflows and outflows need to be 0 due to the in and out needed to go and come from somewhere. So if that's what you are asking, they net out. If you are saying for an individual economy, in general, a large sum of inflows "heats up" an economy driving employment, growth, and inflation. The inverse is true for large outflows. The IMF has an article from 1999 that goes into specifics of inflows and outflows. https://www.imf.org/external/pubs/ft/fandd/1999/09/lopez.htm

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