The scale of cross-border financial flows has increased massively in recent years but it is hard to detect the benefits, according to research by Professor Helene Rey presented in her 2014 Sargan lecture and published in the May 2015 issue of the Economic Journal.
We need to differentiate more between short-term ''hot money'' flows and longer-term international investment, she concludes in this RES @econfilm short summarising her study.
''Financial Flows and the International Monetary System'' by Evgenia Passaria and Helene Rey is published in the May 2015 issue of the Economic Journal. Evgenia Passaria is at Universite Paris Dauphine. Helene Rey is at London Business School.