# Capital flight; flight from the currency

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- Post ID: 588829
- Modified: 2023-07-25T20:59:41+00:00
- Language: en

## Definition

Investors prefer to invest abroad on a large scale (to a great extent) because they have better expectations for investments in the local currency area (generally in defiance of the political and/or economic conditions in their own country). - Households and companies exchange domestic money for foreign money because they no longer have confidence in the value of money. - See age dependency ratio, foreign investment, demographically induced, brain drain, demographic hardening, dollarization, euroization, exotikomanie, five-hundred-euro bill, money confidence, capital movements, international, constancy criterion, secondary currency, round tripping, aging, foreshadow effects. - Cf. Monthly Report of the Deutsche Bundesbank of January 2005, p. 43 f. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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