kapitalrörelseöppenhet
Kapitalrörelseöppenhet, often translated as capital account openness, refers to the extent to which capital can flow freely into and out of a country. This includes the ability of individuals and institutions to invest in foreign assets, borrow from foreign lenders, and repatriate profits. A high degree of capital account openness implies minimal restrictions on such cross-border financial transactions.
The concept is distinct from trade liberalization, which focuses on the free movement of goods and services.
However, capital account openness also presents potential risks. Large and sudden inflows or outflows of capital,