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capital flight

   Also found in: Dictionary/thesaurus, Wikipedia, Hutchinson 0.46 sec.
Capital Flight
The action of investors moving their securities out of a particular country because of a fear of country-specific risks or political instability, or because of the lure of higher returns in a different country.

Notes:
A capital flight may occur from countries that investors believe to have high inflation or other unnecessary country-specific risks that offer only a small chance of a higher investment return.


Capital flight
The transfer of capital abroad in response to fears of political risk.

capital flight
The shifting of funds out of a country to avoid confiscation, controls, or depreciation. Capital flight results in further deterioration of a currency's exchange rate.

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Capitalism Magazine explains why capital flight occurs: "The wealthy individuals of poor countries send their capital abroad to offshore accounts in order to avoid the financial volatility and political instability endemic in their homelands.
The capital flight was apparent on the Sao Paulo Stock Exchange, where the benchmark Ibovespa index closed 0.
The second hall takes a leap to the 1970s: military dictatorship, foreign borrowing, capital flight, industries going belly up, rising unemployment rates and state assumption of private debts.
 
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